Investors were weighing concerns about inflation in the U.S. and a potential escalation in Middle East tensions.

European shares declined on Wednesday as investors awaited the Federal Reserve's monetary policy decision, with ongoing tensions in the Middle East adding to market uncertainty.

The decision on interest rates was expected, but the economic forecasts are a bit worse than back in March. The Federal Reserve left interest rates unchanged on Wednesday while forecasting higher inflation and lower economic growth for the remainder of 2025.

Fed Chair Jerome Powell said that “uncertainty is unusually elevated.” A line chart of the federal funds target rate range which the Fed left unchanged at 4.25 percent to 4.5 percent. 8 Federal funds