Overview

• The Federal Reserve left its benchmark rate unchanged at 4.25–4.50 percent after its June policy meeting.
• Officials pointed to uncertainty from President Trump’s tariffs and potential Iran-Israel conflict as key reasons to hold rates steady.
• Fed projections trimmed U.S. growth forecasts to 1.4 percent while raising the year-end inflation outlook to 3.0 percent.
• A majority of policymakers signaled they expect two quarter-point rate cuts later in 2025 if economic data align with their outlook.
• President Trump intensified his criticism of Fed Chair Jerome Powell, calling him “dumb” for resisting calls to lower borrowing costs.