U.S. President Donald Trump on Wednesday said the Federal Reserve would be better off cutting rates "as U.S. tariffs start to transition (ease!) their way into the economy", on the day the central bank kept rates unchanged.

Uncertainty spawned by President Trump’s tariffs prodded the Federal Reserve to predict a slower economy and higher inflation this year, complicating its decision on whether to cut interest rates any time soon.

So far, the Federal Reserve has avoided commenting on the increasingly uncertain outlook, but investors are waiting to see whether it changes its projections on Wednesday.

Economists expect Fed Chair Jerome Powell to hold off on cutting rates this round due to macroeconomic uncertainties.

U.S. equity futures edged cautiously higher Wednesday, while gold prices hit another all-time record, as investors braced for a crucial Federal Reserve rate decision, as well as commentary from Chairman Jerome Powell on the central bank's new economic forecasts,