Fed Holds Interest Rates Steady, but Trump’s Tariffs Could Slow Inflation Progress

The Federal Reserve kept interest rates unchanged for a second consecutive meeting, citing uncertainty surrounding President Trump’s policies and their impact on the economy. Fed Chair Jerome H. Powell highlighted the potential delay in progress towards reaching the central bank’s 2 percent inflation target due to tariffs, leading to higher inflation forecasts but lower economic growth estimates. The Fed plans to potentially lower interest rates by a half point this year through two quarter-point cuts, although policymakers’ views on future rate cuts varied widely, with some forecasting no additional cuts and others predicting up to three cuts.

Full Article