FED Meet Highlights : Keeps Interest rates steady

Here’s a breakdown of the Fed’s June 18, 2025 decision and its implications:

📌 Key Takeaways

• No rate cut – The Federal Reserve held the federal funds rate steady at 4.25%–4.50%, marking its sixth straight pause ft.com+15reuters.com+15kitco.com+15.

• Outlook still includes cuts – Policymakers signaled the possibility of two 25 bp cuts later this year, though they emphasized these will depend on evolving economic data .

• Economic forecasts revised – The Fed lowered its GDP growth outlook for 2025 to around 1.4% (down ~1.25 pp) and raised the median PCE inflation projection to 3.0%, above the 2% target ft.com.

• Uncertainty rising – Chair Powell emphasized risks including trade tariffs, oil price volatility, and geopolitical tensions. He described the economic outlook as "foggy" and expressed caution before making further moves seekingalpha.com+10reuters.com+10ft.com+10.

• Labor market solid – Despite downgrades, the labor market remains robust, allowing the Fed room to maintain current rates in pursuit of its dual mandate investopedia.com+3federalreserve.gov+3ft.com+3.

🔍 What’s Next?

• Markets: Short-term traders remain cautious—rate cuts could materialize by September, but timing hinges on inflation and tariff developments .

• Watcher’s focus areas: Core inflation trends, tariff updates (especially post-July 9), and employment data—all will shape the Fed’s next moves.

• Fed’s timeframe: The next major check-in is expected in September, when the Fed updates its economic projections and dot‑plot.

📝 Summary Table