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

The decision on interest rates was expected, but the economic forecasts are a bit worse than back in March. The Federal Reserve left interest rates unchanged on Wednesday while forecasting higher inflation and lower economic growth for the remainder of 2025.

Fed Chair Jerome Powell said that “uncertainty is unusually elevated.” A line chart of the federal funds target rate range which the Fed left unchanged at 4.25 percent to 4.5 percent. 8 Federal funds

The Federal Reserve held its key interest rate steady for the fourth time this year on Wednesday, leaving its benchmark lending rate unchanged at a range of 4.25 percent to 4.5 percent. For homebuyers, this means that mortgage rates are likely to keep hovering around the 7-percent mark for the foreseeable future.

Looming decisions about interest rates from the Federal Reserve