Federal reserve holds interest rates steady, signals two cuts this year amid economic uncertainty

The Federal Reserve kept interest rates unchanged, indicating potential future cuts. Economic growth is slowing, and inflation persists above the 2% target, currently at 2.5%. Tariffs are influencing inflation through higher import costs. The Fed will reinvest more in Treasury securities to stabilize markets. Consumer sentiment is cautious as inflation may rise to 3% by year-end, driven by import taxes.