The Federal Reserve delivered an unexpected blow to hopes for lower borrowing costs in the future, projecting higher inflation and higher interest rates in updated forecasts released Wednesday. While policymakers left their benchmark rate unchanged and signaled that they may cut in the second half of this year, forecasts of officials showed they expect fewer cuts next year and the year after that.
The central bank held the federal funds target at 4.25 to 4.50 percent, its level since the December rate cut. But the accompanying economic projections revealed rising concern that inflation is not receding fast enough—and that rates may need to stay elevated to keep it in check.
Officials now forecast that the Fed’s preferred inflation gauge, the personal consumption expenditures (PCE) index, will climb to 3.0 percent by the end of 2025. Core PCE inflation, which excludes food and energy, is expected to reach 3.1 percent. Both represent notable upward revisions from the March forecast, which anticipated 2.7 percent and 2.8 percent respectively.
This crook needs to be gone (like yesterday)!!!
It’s working so well for him now, why WOULD he want to? “Jerome Powell’s net worth is estimated to be around $55 million as of 2025, making him one of the wealthiest individuals to hold the position of Federal Reserve Chair.” MUST.MAINTAIN.STATUS.QUO…