Overview

• The Federal Reserve maintained its benchmark interest rate at 4.25%-4.5%, marking the second consecutive meeting without a rate change.
• Officials revised their 2025 economic growth projection downward to 1.7% from 2.1%, while increasing the inflation forecast to 2.7%, above the 2% target.
• Fed Chair Jerome Powell attributed rising inflation partly to tariffs imposed by the Trump administration, which he said could delay progress on price stability.
• The central bank reiterated its expectation for two interest rate cuts this year but noted internal divisions, with some officials predicting fewer or no cuts.
• Powell emphasized a cautious, wait-and-see approach, citing heightened uncertainty in the economic outlook due to ongoing trade and policy changes.