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Fed decision recap: Central bank signals stagflation fears, Powell says Fed ‘well positioned to wait’ on rates

Wed, 18 Jun 2025 20:48:57 GMT
Fed decision recap: Central bank signals stagflation fears, Powell says Fed ‘well positioned to wait’ on rates

The Federal Reserve kept a steady hand on interest rates, maintaining them at their target range of 4.25% to 4.5%.

The central bank is calling for two rate cuts this year, but policymakers see higher inflation. They have also cut their outlook for gross domestic product.

At his press conference, Federal Reserve Chair Jerome Powell said that policymakers are "well positioned to wait" before moving further on rates. He also said that "we're beginning to see some effects" of tariffs on inflation.

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