Fed predicts higher inflation and slower economic growth, considering rate cuts due to trade risks.

From CNBC: 2025-03-19 14:56:54

Federal Reserve Chair Jerome Powell testified before Congress, revealing a lowered economic outlook with U.S. growth projected under 2%. The Federal Open Market Committee downgraded growth to 1.7% while increasing inflation estimates to 2.8%, citing uncertainty and potential stagflation risks due to trade tariffs. The Fed plans two rate cuts in 2025.

Read more: Stagflation? Fed sees higher inflation and an economy growing by less than 2% this year