Fed Holds Rates at 4.25%-4.5% as Powell Signals Caution

The Federal Reserve held interest rates steady Wednesday, according to CNBC. The central bank kept its target range at 4.25% to 4.5% as officials warned of slower growth and higher inflation. The Federal Reserve's “dot plot” still points to two rate cuts by the end 2025. It removed one projected cut each for 2026 and 2027, leaving four cuts ahead. Seven of the 19 Fed participants opposed rate cuts this year, up from four in March, but the committee approved the policy statement unanimously. Fed Chair Jerome Powell said the central bank remains “well positioned to wait” before adjusting policy. Markets were flat following the decision.