Federal Reserve Maintains Interest Rates, Downgrades Economic Forecasts

The Fed projects slower growth, higher inflation, and rising unemployment as it navigates uncertainties tied to President Trump's policies.

The Federal Reserve kept interest rates steady, citing increased economic uncertainty under President Trump's administration.
Economic forecasts were downgraded, with GDP growth now expected at 1.7%, inflation at 2.7%, and unemployment at 4.4% by year-end.
The Fed plans two rate cuts of 0.25% each later in 2025 to address economic risks while managing persistent inflation above its 2% target.
Uncertainty surrounding new tariffs and federal spending cuts has influenced the Fed's cautious approach to monetary policy.
President Trump has publicly pressured the Fed to lower rates further, while economists criticize his policies as potentially harmful to economic stability.