The US Federal Reserve held interest rates steady for a fourth consecutive meeting on Wednesday, June 18, forecasting higher inflation and cooler growth this year as President Donald Trump's tariffs begin to take hold and geopolitical uncertainty swirls. Fed Chair Jerome Powell told reporters the central bank would make better decisions if it waited a few months, signaling the next rate cut could take some time to materialize.
The Fed kept the benchmark lending rate at a range between 4.25% and 4.50% at the end of its two-day meeting, with officials penciling in two rate cuts this year, similar to earlier projections. On Wednesday, Trump, who has repeatedly pressured the independent central bank for rate reductions, called Powell "stupid" for not lowering rates more quickly. "We have a stupid person, frankly, at the Fed," Trump said, hours before the bank was due to release its policy decision. "We have no inflation, we have only success, and I'd like to see interest rates get down," he added, speaking at the White House. "Maybe I should go to the Fed. Am I allowed to appoint myself?"
The Fed said in a statement that "uncertainty about the economic outlook has diminished but remains elevated." The central bank also cut its expectations for economic growth this year and raised its inflation and unemployment forecasts in updated projections.
