The US Federal Reserve held interest rates steady Wednesday for the fourth straight meeting, while cutting the outlook for the country’s economy.
The Fed forecast 1.4% GDP annual growth, down from its earlier estimate of 1.7%, and raised its inflation prediction.
The decision underscored the central bank’s “wait-and-see” posture; Fed Chair Jerome Powell said the words “uncertain” and “uncertainty” more than 15 times in his press conference.
While recent inflation readings have been muted, Powell noted that more price increases are expected as a result of President Donald Trump’s tariffs, and the summer will be critical to determine the path forward. Trump renewed criticism of Powell, calling him “stupid” for not cutting rates.
AD