Fed Steadies Rates Amid Economic Uncertainty
The Federal Reserve maintained interest rates, signaling potential rate cuts this year. Chairman Jerome Powell highlighted inflation risks from tariffs and the need for data-dependent decisions. Economic projections indicate slowing growth and persistent inflation, with differing opinions among policymakers on future rate cuts.
The Federal Reserve opted to maintain its current interest rates on Wednesday, with officials hinting at possible rate reductions by year-end. Despite recent low inflation, Fed Chair Jerome Powell warned of impending inflation due to trade tariffs, calling for cautious, data-driven policy decisions.
New economic forecasts anticipate a challenging outlook, with slowing GDP growth and rising unemployment in 2025, alongside persistent inflation rates. While some policymakers foresee needed rate cuts, a divided consensus reflects ongoing uncertainty surrounding economic policies and market conditions.
Amid external tensions, including conflict in the Middle East, Powell reiterated the Fed's readiness to adapt its policies in response to evolving economic signals, despite President Trump's criticism and calls for immediate rate cuts.
(With inputs from agencies.)
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