Overview

• The Federal Reserve kept its benchmark interest rate unchanged at 4.25%-4.5%, citing significant economic uncertainty.
• Growth projections for 2025 were downgraded from 2.1% to 1.7%, while inflation forecasts were raised to 2.7%, partially due to tariff impacts.
• Fed Chair Jerome Powell described the economic outlook as highly uncertain, driven by the Trump administration's tariff and trade policies.
• Despite the challenges, the Fed still anticipates two rate cuts this year, though some officials expressed doubts about their feasibility.
• Stock markets responded positively to the Fed's cautious approach, with major indices gaining over 1% following the announcement.