The Fed also forecasted two quarter-point interest-rate cuts over the remainder of 2025, carrying over a prediction issued in March. Two additional quarter-point cuts will be made in 2026, as well as one quarter-point cut in 2027, the central bank said.

The U.S. central bank held interest rates steady on Wednesday and policymakers signaled borrowing costs are still likely to fall this year, but Federal Reserve Chair Jerome Powell cautioned against putting too much weight on that view,

Officials at the Federal Reserve left interest rates unchanged, as they brace for the effects of President Trump’s policies on trade, taxes and immigration.