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Fed holds key rate steady, still sees two more cuts this year

  • On Wednesday, the Federal Reserve held its main policy rate steady at a range of 4.25% to 4.50%, marking the fourth consecutive meeting without a rate change.
  • This decision came after inflation, measured by the Fed’s preferred indicator, fell to 2.1% in April, marking its lowest level since September of the previous year, alongside downgraded GDP growth projections for 2025.
  • Federal Reserve officials projected a median of two 0.25 percentage point reductions in interest rates during 2025 but stressed that the dot plot reflects forecasts rather than firm commitments.
  • The chances of holding rates steady were 99.9% according to CMA Group's FedWatch tool, while Powell reassured investors the data showed a solid but cloudier picture.
  • The Fed’s wait-and-see stance and planned economic data releases could influence markets amid ongoing uncertainties from tariffs and geopolitical tensions.
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Despite President Trump's demands, Fed holds the key interest rate stable. Currently, it is between 4.25 and 4.5 percent. A forecast shows lower economic growth and higher inflation.

·Munich, Germany
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  • 55% of the sources are Center
55% Center
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Newsmax broke the news in Washington, United States on Tuesday, June 17, 2025.
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