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Home Business NewsFederal Reserve holds interest rates steady as it awaits evidence of tariff impact 

Federal Reserve holds interest rates steady as it awaits evidence of tariff impact 

by Hugh Lind, Economist at CEBR
19th Jun 25 10:11 am

The Federal Reserve (Fed) maintained interest rates yesterday evening as it continues to adopt a wait-and-see approach to the US economy.

However, its projections present a worse picture of the US economy compared with March.

Growth was revised downwards, while inflation and unemployment projections were increased.

Looking ahead, we expect continued strength in domestic economic activity, combined with upticks in inflation resulting from tariffs, to prevent the Fed from cutting too aggressively over the rest of 2025. As such, we anticipate just one more cut by the end of the year.

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