Federal Reserve sees tariffs raising inflation this year, keeps key rate unchanged
The Federal Reserve kept its benchmark interest rate unchanged Wednesday and signaled that it still expects to cut rates twice this year even as it sees inflation staying stubbornly elevated. The Fed also now expects the economy to grow more slowly this year and next than it did three months ago, according to a set of quarterly economic projections also released Wednesday. Eight of the 19 Fed officials said they see only one or zero rate reductions this year, up from just four in December.