Based on the latest FOMC statement and Powell's press conference highlights, the main reasons for the Federal Reserve to keep interest rates unchanged are as follows:

① Steady economic activity expansion: The latest indicators show that U.S. economic activity is expanding at a solid pace, upgraded from the previous "moderate" assessment, indicating that the economic growth foundation remains solid.

② Signs of stabilization in the labor market: Employment growth remains low (or slow), but signs of stabilization are evident in the unemployment rate (shifting from a continuous rise to partial stability). The previous downside risks to employment have eased, so there is no immediate need to cut rates further to support employment.

③ Inflation remains at a relatively high level: The inflation rate is still elevated / somewhat higher, and has not yet convincingly returned to the long-term target of 2%. In the Fed's dual mandate (maximum employment + 2% inflation), the upside inflation risks have not been fully eliminated.

④ Economic outlook uncertainty remains high: The committee closely monitors the dual risks faced by the dual mandate, but recent upside inflation risks and downside employment risks have both diminished. The current interest rate level is viewed as appropriate, allowing the Fed to patiently observe more data.

⑤ Data-dependent decision-making: When considering further rate adjustments, the Fed will carefully evaluate the latest data, the evolving economic outlook, and risk balance, without providing a clear timetable or urgent signals for rate cuts.

Powell emphasized in the press conference that the economy's resilience has been demonstrated once again, exceeding expectations. The current interest rate is "appropriate," the labor market may be stabilizing, and consumer confidence, though pessimistic, is accompanied by resilient actual consumption. The Fed also needs to maintain policy independence in the current environment, unaffected by political pressures (such as Trump's repeated calls for larger rate cuts).

Overall, this pause in rate cuts reflects the Fed's judgment that the current policy stance is sufficiently balanced, not rushing to further easing, but waiting for clearer signals of inflation cooling or significant deterioration in employment before acting. The market currently expects 1-2 rate cuts possibly in 2026, but the timing and magnitude are highly data-dependent.