The Federal Reserve opted to maintain its benchmark interest rates in a highly anticipated decision on Wednesday, while signaling that rate cuts remain likely later this year.
Amid growing concerns over the economic impact of tariffs on an already slowing economy, the Federal Open Market Committee (FOMC) held its key borrowing rate steady in the 4.25%-4.5% range, unchanged since December. Markets had widely expected no changes at this week’s two-day policy meeting.
In addition to its rate decision, the Fed updated its economic and interest rate projections through 2027 and adjusted the pace of its bond portfolio reduction.
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