The Fed left interest rates unchanged, and the reasoning is that today's price spikes look temporary rather than a real inflation threat.

• The Fed did not cut rates, but the driver is its own read on inflation, not pressure from Trump.
• Soaring memory chip and AI hardware prices are treated as a passing spike that supply will catch up to.
• Nvidia chips have doubled in a year, and that jump is seen as unsustainable and likely to reverse.
• The Fed would rather sit back and watch than react to price jumps from AI demand or war it views as short-lived.
• Critics warn this is the same "transitory" bet that let inflation run hot last time.

Outlook: Expect the Fed to keep waiting on cuts until it sees whether these price spikes actually fade.