Fed Holds Rates Steady, Powell Vows to Stay Amid DOJ Probe

Federal Reserve officials left interest rates unchanged and continued to expect one rate cut this year as they acknowledged increased uncertainty due to war in the Middle East.

Chair Jerome Powell emphasized that to resume lowering rates, officials would have to see progress in reducing inflation, especially goods inflation that has been boosted by tariffs.

“If we don’t see that progress, then we won’t see the rate cut,” Powell said in remarks to reporters after the Fed released its decision.

That progress may be difficult to achieve. In economic forecasts released with their decision, officials raised their outlook for inflation ...