Fed Leaves Key Rate Unchanged
UNITED STATES, JUN 18 – The Federal Reserve kept rates at 4.25%-4.5% to prioritize price stability and employment amid tariff-driven inflation risks and an expected slowdown in US growth.
- The Federal Reserve left its key interest rate unchanged at 4.25 to 4.5 percent after the FOMC meeting on June 18, 2025, in Washington D.C.
- The decision followed concerns that recent tariffs announced on April 2 could raise inflation and slow economic growth, with the tariff pause set to end on July 9.
- Jerome Powell noted that the economy remains solid despite cracks in housing, emphasizing a longer-run housing shortage and current high borrowing costs.
- Fed officials forecast growth slowing to 1.4 percent this year from 2.5 percent last year, inflation rising to 3 percent by year-end, and unemployment increasing slightly to 4.5 percent.
- The Fed plans to remain patient, holding rates steady now but expects two quarter-point rate cuts later this year if inflation eases and labor remains stable.
24 Articles
24 Articles
US ECONOMY
The US Federal Reserve has left the key rates unchanged.
The Federal Reserve (Fed) again kept interest rates unchanged on Wednesday as officials await the impact of President Donald Trump's sweeping policy shifts and tensions in the Middle East. The central bank left its benchmark interest rate unchanged, in a range of 4.25% to 4.5%, where it has been since January. Economists expect Trump's erratic trade war to raise prices and eventually lead to a surge in unemployment. So far, Trump's tariffs have …
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