US markets close flat as Fed keeps interest rates unchanged, Dow Jones in red

US markets closed largely unchanged on Wednesday after the US Federal Reserve kept interest rates unchanged.

The central bank opted to maintain its benchmark interest rate at its current level, with Chair Jerome Powell indicating a cautious approach.

Powell conveyed that the Fed would assess the impact of President Donald Trump's recently implemented tariffs on inflation before considering further rate adjustments.

The S&P 500 was down 0.03% to 5,980.86. The Dow Jones fell 44 points to 42,171.66. The tech-heavy Nasdaq closed 0.13% up at 19,546.27.

Coinbase, Wells Fargo, and Intel were among the top gainers in the S&P 500 on Wednesday.

Marvell Technology Inc. was a top gainer on the Nasdaq.

Coinbase gained 17% in the session along with USDC issuer Circle after the US Senate passed the landmark GENIUS Act, which will provide a framework enabling private entities to issue stablecoins.

Intel gained after announcing additions to the leadership group, including the engineering division.

The struggling company aims to make a turnaround in its AI chip offerings to compete against market leader Nvidia.

Marvell stock rallied 7% after announcing a collaboration with Empower Semiconductor on developing integrated power solutions for its custom silicon platforms.

Mastercard and Visa were among the top losers in the S&P 500.

Both stocks fell more than 5% as the GENIUS Act provides momentum to the corporations planning to issue stablecoins.

Amazon and Walmart reportedly are planning to introduce their own stablecoins.

Federal Reserve holds rates steady amid tariff concerns

On Wednesday, the Fed's key rate was kept unchanged within a target range of 4.25% to 4.5%, a level it has held since December.

The central bank's update presented investors with a mixed outlook.

While policymakers still anticipate potential rate cuts later this year, they concurrently suggested a risk of stagflation.

The projections from policymakers indicated two more quarter-point rate reductions for the current year.

However, they revised down the forecast for economic growth in 2025 to a modest 1.4% and simultaneously increased the outlook for core inflation to 3.1%.

During a press conference that followed the decision, Powell acknowledged that tariffs were "beginning to see some effects" on inflation.

Despite this, he affirmed that policymakers are "well positioned to wait" before enacting any changes to interest rates.

Earlier on Wednesday, the US President Donald Trump once again criticized Powell and other Federal Reserve officials for their reluctance to ease monetary policy.

President Trump asserted that the federal funds rate should be at least two percentage points lower, reportedly characterizing Powell as "stupid" for not advocating for a committee decision to cut rates.

Federal Reserve officials have reportedly hesitated to adjust rates, expressing concerns that the tariffs implemented by President Trump this year could lead to increased inflation in the coming months.

To date, various price indicators have not shown a significant impact from these duties.

The delayed effect of the tariffs, combined with a softening in consumer demand and an accumulation of inventories preceding the April 2 "liberation day" announcement, have collectively contributed to mitigating their overall impact.