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.

By Howard Schneider WASHINGTON -The Federal Reserve held interest rates steady on Wednesday and policymakers signaled borrowing costs are still likely to fall this year, but slowed the overall pace of expected future rate cuts in the face of estimated higher inflation flowing from the Trump administration's tariff plans.