U.S. stocks finished modestly higher Friday after the Federal Reserve signaled it was in no rush to make a major move on interest rates. Investors took the message as a reminder that policymakers remain cautious while waiting for more evidence on inflation and the broader economy.

The session was marked by restrained trading rather than a strong risk-on rally. Market participants stayed focused on the next round of inflation data, which could shape expectations for how long borrowing costs stay elevated and whether rate cuts remain on the table later this year.

The Fed’s latest stance left traders largely in wait-and-see mode. While the central bank did not send a sharply hawkish signal, it also gave little reason to expect an immediate shift toward easier policy, keeping Wall Street attentive to upcoming economic reports.

For now, the market’s reaction suggests investors are balancing cautious optimism with uncertainty. With inflation still the key variable, the next data releases may prove more influential than Friday’s modest gains.