Financial News: Fed Leaves Interest Rates Unchanged, Still Signals Two

Fed Leaves Interest Rates Unchanged, Still Signals Two 2025 Rate Cuts

06/18/2025 - 14:34:00 (RTTNews)

(RTTNews) - Despite pressure from U.S. President Donald Trump, the Federal Reserve on Wednesday announced its widely expected decision to leave interest rates unchanged.

The Fed said it decided to maintain the target range for the federal funds rate at 4.25 to 4.50 percent in support of its dual goals of maximum employment and inflation at the rate of 2 percent over the longer run.

The central bank's decision came as it noted swings in net exports have affected data but said recent indicators suggest that economic activity has continued to expand at a solid pace.

"The unemployment rate remains low, and labor market conditions remain solid," the Fed said. "Inflation remains somewhat elevated."

In the latest economic projections from Fed officials, the forecast for U.S. economic growth was downwardly revised to 1.4 percent from 1.7 percent.

The forecast for core U.S. consumer price growth, which excludes food and energy prices, was upwardly revised to 3.1 percent from 2.8 percent.

Despite the changes, Fed officials still seem to expect to two interest rate cuts this year, lowering the rate to a range of 4.0 percent to 3.75 percent by the end of 2025.

Fed officials, however, did raise their forecast for interest rates at the end of next year to a range of 3.75 percent to 3.50 percent from 3.50 percent to 3.25 percent.

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