Fed Stands Firm Amid Rate Cut Expectations

The Federal Reserve, on Wednesday, maintained its key interest rates, underscoring a cautious approach towards future monetary policies. The central bank, while signaling a potential downward adjustment in the near term, continues to navigate the economic challenges posed by existing trade tariffs.

With an economic growth forecast of 1.4% this year and inflation projected to close at 3% by 2025, the Fed's latest projections suggest a sluggish recovery amidst rising unemployment. Fed Chair Jerome Powell emphasized the importance of flexibility in policy adjustments as officials await clearer economic signals.

Market reactions remained steady, with minor fluctuations among stock indexes and treasury yields. President Donald Trump criticized Fed policies, advocating for immediate rate cuts, conflicting with the Fed's measured approach. The ongoing trade dialogue and anticipated tariffs add layers of complexity to the economic outlook.

(With inputs from agencies.)