US Fed keeps interest rates unchanged, cuts growth forecast

The US Federal Reserve held interest rates steady for a fourth consecutive meeting Wednesday, forecasting higher inflation and cooler growth this year. The Fed kept the benchmark lending rate at a range between 4.25 percent and 4.50 percent at the end of its two-day meeting, with officials penciling in two rate cuts this year, similar to earlier projections.

On Wednesday, the Fed cut its expectations for economic growth this year, and raised its inflation and unemployment forecasts in updated projections. The rate decision was in line with analysts' expectations. Observers largely expect policymakers to adopt a wait-and-see approach this year as they monitor the effects of Trump's tariffs on the world's biggest economy.