Fed delivers big inflation surprise even as it holds rates steady
The Fed's new growth and inflation forecasts may have caught markets offguard.
The Federal Reserve held its benchmark lending rate steady following its two-day policy meeting in Washington Wednesday, while cutting its GDP growth forecast and boosting its outlook for near-term inflation amid concern about the impact of tariff, immigration and budget-cutting policies from President Donald Trump.
The Federal Funds Rate was left between 4.25% and 4.5%, a move that analysts fully anticipated, and the central bank held to its broader forecast of two quarter-point rate cuts between now and year's end. The central bank's most recent rate cut came in December.
