The Federal Reserve held interest rates steady at 4.25%-4.5%, despite expectations of higher inflation and slower economic growth. The committee's "dot plot" still projects two rate cuts by the end of 2025, down from previous projections. While seven of nineteen participants opposed any cuts this year, the policy statement was approved unanimously. Economic projections show GDP growth at 1.4% in 2025 and inflation at 3%. Fed Chairman Jerome Powell indicated a wait-and-see approach, citing uncertainty. President Trump, however, continues to pressure the Fed for significant rate cuts, citing the high cost of government debt.

Prepared by Christopher Adams and reviewed by editorial team.