Overview

• The Federal Reserve left its benchmark rate unchanged at 4.25%–4.50% in its June policy decision, maintaining its highest level since last December.
• Fed officials’ dot-plot forecasts signal two quarter-point rate cuts in 2025, totaling a 0.50% easing of monetary policy.
• The central bank lowered its 2025 GDP growth outlook to 1.4% from 1.7% and raised its core inflation projection to about 3%.
• President Trump renewed personal attacks on Fed Chair Jerome Powell, calling him “stupid” and warning he could be removed before his term ends in May 2026.
• Powell emphasized that elevated uncertainty and tariff-driven price pressures require a patient approach while underscoring the Fed’s policymaking independence.