Summary
The Federal Reserve kept interest rates at 4.5% but warned of rising economic uncertainty, partly due to Trump’s tariff policies.
The Fed lowered its 2025 GDP growth forecast from 2.1% to 1.7% and expects inflation to approach 3%.
Fed Chair Powell said tariffs are likely contributing to inflation but called the rise “transitory.”
Markets reacted with mixed signals. Analysts see signs of stagflation, with slow growth and rising prices.