The Federal Reserve kept its forecast for two rate cuts this year amid Trump's tariffs, which are expected to push up inflation and slow the economy

Uncertainty about tariffs and inflation appear to be taking their toll on the economy. Members of the Federal Reserve’s monetary-policy committee lowered their projections for annualized growth in America’s gross domestic product to just 1.

“Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace,” the Fed said in its statement. “The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated.”