ISTANBUL 

US stocks closed with gains midweek following the Fed's decision to keep the policy rate unchanged.

The Nasdaq gained 0.27%, or 48.5 points to finish at 17,738.16 and the S&P 500 rose 0.43% to 5,631.28.

The Dow was up 0.7%, to 41,113.97.

As anticipated, the Federal Open Market Committee maintained its benchmark overnight borrowing rate, which has been in this range since December, between 4.25% and 4.5%.

"The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen," said a post-meeting statement.

The move comes as concerns about a global trade war driving up prices are growing, which would make it more difficult for the central bank to lower inflation to its target of 2%.

Fed Chair Jerome Powell warned Wednesday that if the recently announced large tariff increases are sustained, they will likely increase inflation, slow economic growth and increase unemployment

Powell said the prospect of the Fed cutting rates this year will "depend" on the effects of the tariffs on employment and inflation.

In response to a question about whether US President Donald Trump's demand for Powell and the Fed to cut interest rates influences the decision and makes his job more difficult, Powell said it does not affect the job "at all."

Trump dismissed the possibility of bringing down steep tariffs on Chinese imports to renew trade negotiations with China.

Speaking to reporters in the Oval Office during the swearing-in of US ambassador to China David Perdue, Trump was asked if he would consider bringing down the 145% tariffs imposed on Chinese goods to bring Beijing to the table for negotiations. "No," Trump responded.

Following Bloomberg's report that the US is considering revoking Biden's chip restrictions rule which created additional license requirements for US exports of AI chips to a large portion of the world, stocks climbed, especially big chip producers.

Nvidia's shares were up 3.1% at the close, AMD rose 1.76%, Intel added 1.86% and Oracle gained 1.13%.