Federal Reserve Holds Interest Rates Steady, Lowers Growth Forecast

The Fed maintains rates at 4.25%-4.5% while projecting slower economic growth and higher inflation, citing uncertainty from President Trump's tariff policies.

The Federal Reserve decided to keep interest rates unchanged at 4.25%-4.5%, a level maintained since December 2024.
The Fed revised its 2025 economic growth forecast downward to 1.7% from 2.1%, reflecting a more pessimistic outlook.
Inflation is now projected to reach 2.7% in 2025, exceeding the Fed's 2% target, with tariffs contributing significantly to price pressures.
Chair Jerome Powell acknowledged increased recession risk but emphasized it remains moderate, not high.
The decision to hold rates steady was not unanimous, highlighting internal debate within the Federal Reserve.

Süddeutsche Zeitung

Frankfurter Allgemeine Zeitung