Fed Holds Interest Rates Steady, Predicts Two Cuts in 2025

The Federal Reserve kept interest rates unchanged at 4.25% to 4.5% and maintained its forecast of two rate cuts for 2025, despite anticipating a tougher battle against inflation.

This marks the third consecutive meeting without a rate change. Fed members still expect rates to drop to 3.9% by year-end, with forecasts for 2026 and 2027 remaining unchanged.

Fed Chair Jerome Powell will hold a press conference at 6:30 PM GMT, where he is expected to emphasize a "patient and cautious" approach to future rate cuts.