Fed keeps rates steady but pencils in two cuts by end of 2025; Powell sees ‘meaningful’ inflation ahead

The US central bank held interest rates steady on Wednesday and policymakers signaled borrowing costs are still likely to fall in 2025, but Federal Reserve Chair Jerome Powell cautioned against putting too much weight on that view, and said he expects “meaningful” inflation ahead as consumers pay more for goods due to the Trump administration’s planned import tariffs.

“No one holds these … rate paths with a great deal of conviction, and everyone would agree that they’re all going to...