Fed maintains rates amid slow growth and inflation

The Federal Open Market Committee decided yesterday to keep interest rates steady at 4.25%-4.5%, with Federal Reserve Chair Jerome Powell stating that they will “wait” for more clarity on the economy before making any policy adjustments.

Despite signaling two potential rate cuts later this year, the Fed’s forecast sees GDP growth slowing to 1.4% in 2025 and inflation remaining at 3%.

However, seven of the 19 Fed officials now oppose any cuts this year, highlighting growing internal division.

With layoffs rising, retail sales falling, and the housing market cooling, pressure to cut may build—especially with President Donald Trump pushing aggressively for lower rates amid a swelling $36 trillion national debt.