Overview

• The Federal Reserve kept interest rates at 4.25%-4.5%, maintaining its forecast for two rate cuts later in 2025.
• Economic growth projections for 2025 were lowered from 2.1% to 1.7%, while inflation expectations rose to 2.7%, partly attributed to tariff-driven price increases.
• Consumer sentiment has dropped to a three-year low, reflecting widespread concern over inflation, personal finances, and labor market conditions.
• Unemployment is expected to rise to 4.4% by the end of 2025, up from the current rate of 4.1%, as economic uncertainty persists.
• Fed Chair Jerome Powell acknowledged that tariffs are delaying progress in lowering inflation and increasing economic unpredictability.