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Federal Reserve could still cut interest rates this year, but for ‘bad’ reasons

  • The Federal Reserve is expected to signal it could cut its key interest rate twice this year, maintaining the forecast from December.
  • Interest rate cuts may switch from being based on declining inflation to addressing struggles caused by tariffs and economic uncertainty.
  • Chair Jerome Powell indicated that the Fed is evaluating President Donald Trump's economic policies, stating, 'You’re trying to find the signal of what’s fundamental, and what is maybe tariff noise.'
  • Powell described the costs of being cautious as 'very, very low.
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abc News broke the news in United States on Tuesday, March 18, 2025.
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