US Fed Keeps Interest Rates Steady for the Second Consecutive Time in 2025

The US Federal Reserve announced that it would keep interest rates steady for the second time this year, at a range of 4.25% to 4.5%, while raising its inflation forecast for the US to 2.7% from 2.5%.

The Fed expects two interest rate cuts this year, along with reaching its 2% inflation target by 2027.

In its statement today, the Federal Open Market Committee said that recent indicators point to continued strong economic growth, noting that the unemployment rate has stabilized at a low level in recent months and that labor market conditions remain stable, while inflation remains moderately elevated.

The committee added that it seeks to achieve maximum employment and a 2% inflation rate over the long term, explaining that uncertainty has increased regarding the economic outlook and that it is paying “close attention” to the risks facing both areas of its dual mandate.