Washington: The U.S. Federal Reserve kept its benchmark interest rate unchanged Wednesday, as the central bank is working to assess the ramifications of U.S. President Donald Trump’s tariff policies and other measures that have added to economic uncertainties.

According to Yonhap News Agency, after the two-day Federal Open Market Committee meeting, the central bank announced the decision to hold the rate steady at the 4.25 to 4.50 percent range. The pause on cuts came after a quarter-percentage-point cut each in December and November, and a 50-basis-point reduction in September.

FOMC members’ new median economic projection showed that the federal funds rate would be cut to 3.9 percent at the end of the year, signaling the possibility of two rate reductions this year. In their previous projection in December, officials also anticipated two cuts this year.

This week’s rate decision put the gap between the key rates of South Korea and the United States at up to 1.75 percentage points.