Fed holds interest rates steady, still sees two cuts coming this year

The Federal Reserve decided to keep benchmark interest rates steady but hinted at potential cuts later in the year due to concerns over the impact of tariffs on the economy. The Federal Open Market Committee maintained the key borrowing rate at 4.25%-4.5% and updated their rate and economic projections, while also adjusting the pace of reducing bond holdings in response to ongoing economic challenges. Markets had not anticipated any rate changes at this week’s policy meeting, signaling a cautious approach by the Fed.

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