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Federal Reserve on Inflation Watch, but Interest Rate Cuts Still Ahead
As widely expected, the Federal Reserve kept rates unchanged at today’s meeting. The main event at today’s meeting was the release of new economic projections from FOMC participants, which sheds light on the committee’s decisions in future meetings. The previously published projections came in March 2025, before the shocking tariff developments in April. The federal-funds rate has been maintained in the target range of 4.25%-4.50% since it was cut by 1 percentage point from September to December 2024. The rate had been at a 5.25%-5.50% range from July 2023 to September 2024—which, having risen from nearly 0% ... (full story)