#PowellRemarks Here are five key takeaways from Wednesday’s Federal Open Market Committee interest rate decision and Federal Reserve Chair Jerome Powell’s press conference:

As expected, the Fed left interest rates unchanged in a range of 4.25%-4.5% for a fourth straight meeting. Both the committee’s statement and Powell himself reiterated that policymakers want to wait and see how economic data evolve going forward.

Tariffs were a central theme in the Fed’s updated economic projections and the press conference. Fed officials boosted their inflation outlook and cut their growth forecasts. Powell said most policymakers are expecting the tariff impact to to be felt later this summer.

Still, the median estimate of participants is for two rate cuts this year, unchanged from the outlook in March. Powell shied away from any attempts by reporters to get him to say anything definitive about interest rates going forward, adding that no one on the FOMC holds their rate path outlook with much conviction right now.

Powell said the Middle East conflict may not lead to much prolonged pressure on energy prices because the US is much less dependent on the region as a source of oil.

While Treasuries hit the day’s highs after the release of the Fed statement, they steadily pared gains during Powell’s press conference. Two-year yields were down about two basis points at 3.93% as of 3:23 p.m. in New York. The S&P 500 was flat at 5,980. The Bloomberg Dollar Spot Index reversed losses as Powell spoke and was up 0.1%.

Catarina Saraiva

Fed Reporter

Federal Reserve officials left interest rates unchanged and continued to pencil in two rate cuts in 2025, saying uncertainty over the economic outlook was still high but had diminished, writes Bloomberg’s Amara Omeokwe.

While the median expectation for two rate cuts in 2025 didn’t change, a number of officials lowered their projections. Seven officials now foresee no rate cuts this year, compared with four in March. Two others pointed to one cut this year.