The Federal Reserve cut its outlook for the US economy on Wednesday, with policymakers split on whether they would be able to reduce interest rates at all this year as Donald Trump’s tariffs bring risks of higher inflation.
Fed officials on Wednesday cut their forecasts for economic growth and boosted their outlook for inflation as Trump’s levies on America’s trading partners ricochet across the world’s largest economy.
The Federal Open Market Committee held rates steady for the fourth meeting in a row at a range of 4.25-4.5 per cent, despite the US president calling earlier on Wednesday for chair Jay Powell to slash borrowing costs by at least 2 percentage points.
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