#PowellRemarks

The Federal Reserve kept a steady hand on interest rates, maintaining them at their target range of 4.25% to 4.5%.

The central bank is calling for two rate cuts this year, but policymakers see higher inflation. They have also cut their outlook for gross domestic product.

At his press conference, Federal Reserve Chair Jerome Powell said that policymakers are "well positioned to wait" before moving further on rates. He also said that "we're beginning to see some effects" of tariffs on inflation.

Federal Reserve Chair Powell said on Wednesday that tariffs are an unavoidable cost increase to businesses and consumers.

"Everyone that I know is forecasting a meaningful increase in inflation in coming months from tariffs because someone has to pay for the tariffs," Powell said. "It will be someone in that chain that I mentioned, between the manufacturer, the exporter, the importer, the retailer, ultimately somebody putting it into a good of some kind or just the consumer buying it."

"All through that chain, people will be trying not to be the ones who can take up the cost but ultimately, the cost of the tariff has to be paid. And some of it will fall on the end consumer."