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The Federal Reserve maintained interest rates unchanged Wednesday for the fourth straight meeting, keeping the benchmark rate between 4.25 and 4.50 percent as policymakers navigate economic uncertainty surrounding President Donald Trump's trade policies.
Fed officials projected two rate cuts for 2024, unchanged from previous forecasts, despite mounting pressure from Trump for more aggressive monetary easing. The president criticized Fed Chair Jerome Powell on Wednesday, calling him "stupid" for not lowering rates more quickly.
The Fed revised its economic projections downward, cutting growth expectations for the year while raising forecasts for both inflation and unemployment. The adjustments reflect policymakers' cautious stance as they assess the potential economic impact of the administration's trade measures.
The central bank's statement acknowledged that while "uncertainty about the economic outlook has diminished," it "remains elevated" as Trump's tariff policies begin implementation across the global economy.
Financial analysts had anticipated the rate hold, with most expecting the Fed to maintain a wait-and-see approach throughout 2024. The central bank faces the challenge of balancing Trump's calls for stimulus against concerns that premature rate cuts could reignite inflation.
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