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Fed Keeps Rates Steady but Pencils in Two Cuts by End of 2025; Powell Sees ‘Meaningful’ Inflation Ahead - Hawaii Tribune-Herald
- On Wednesday, the U.S. Federal Reserve opted to maintain current interest rates and released forecasts anticipating two reductions by the end of 2025.
- The decision followed concerns about the inflationary impact of President Trump's planned import tariffs and a slower economic outlook with rising joblessness.
- Federal Reserve Chair Jerome Powell indicated that inflation is expected to increase substantially in the near future due to higher costs associated with tariffs, and emphasized that policymakers will rely on economic data before making any changes to monetary policy.
- Economic forecasts indicate that growth will decelerate to 1.4% in 2025, the unemployment rate will increase to 4.5%, and inflation is expected to reach 3% by the end of the year, remaining significantly higher than current figures, despite differing views among policymakers regarding interest rate reductions.
- The Fed signaled borrowing costs likely will fall in 2025 but emphasized uncertainties about tariffs and inflation could affect the timing and pace of policy changes.
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As the Fed waits on the impact of tariffs, some are already feeling it
Federal Reserve Bank Chair Jerome PowellChip Somodevilla/Getty ImagesThis post originally appeared in the Business Insider Today newsletter.You can sign up for Business Insider's daily newsletter here.Happy Juneteenth! Since the BI Today team is off for the holiday, we're running an abbreviated version of the newsletter.But we've still got time for a scoop! Meta's deal with Scale AI has left its Big Tech clients eager to distance themselves from…
Fed keeps rates steady but pencils in two cuts by end of 2025; Powell sees ‘meaningful’ inflation - West Hawaii Today
The U.S. 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.
Fed keeps rates steady but pencils in two cuts by end of 2025; Powell sees ‘meaningful’ inflation ahead - Hawaii Tribune-Herald
WASHINGTON — The U.S. 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.
Manuel Tovar, head of the Ministry of Foreign Trade (Comex), said that there is a likelihood that the United States will eliminate the 10% tariff on imports of goods made from Costa Rica. “Just as there was the possibility of adopting that policy (arancelaria), I believe that there is a possibility of reversing it, of course, if we would not be sitting there (negotiating with the United States),” the official said this Wednesday, before the Comm…
Fed Chair Warns Trump Tariffs Will Increase Prices, Leaves Interest Rates Unchanged
Federal Reserve Chairman Jerome Powell plainly stated that President Donald Trump’s tariffs will result in increased prices in the near future. Powell on Wednesday spoke at a conference to discuss the country’s economic outlook over the next few years. The chairman also revealed the Federal Reserve decision to leave interest rates unchanged. That decision is sure to draw the ire of the president, who’s insisted for months that the rates be decre…
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