Overview

• The Federal Reserve kept its benchmark rate at 4.25%–4.50% for a fourth straight meeting.
• Updated projections are expected to show only one 25 basis-point rate cut in 2025, down from two in March’s dot plot.
• Policymakers flagged uncertainty over President Trump’s tariffs and rising oil prices from the Israel-Iran conflict as reasons for their cautious stance.
• U.S. retail sales fell 0.9% in May, while inflation remained broadly stable near the Fed’s 2% target.
• President Trump intensified pressure on Fed Chair Jerome Powell, demanding steep rate cuts and labeling him a “numbskull.”