đź’¨ Abstract

Federal Reserve officials anticipate worsening inflation but expect two interest rate cuts by year-end 2025. They kept the key rate unchanged, forecasting slower growth, higher inflation, and increased unemployment due to recent tariffs. The Fed will likely wait to assess the tariffs' impact before adjusting rates. President Trump has criticized the Fed's caution, but economists warn against rate cuts solely to reduce government borrowing costs. Various central banks globally have altered rates in response to economic conditions.

Courtesy: WTOP Staff