The Federal Reserve on Wednesday stuck to its forecast of two interest-rate cuts in 2025 despite seeing a burst of inflation coming in the next few months as a result of higher tariffs. In an updated forecast,

U.S. central bankers are increasingly split over the appropriate path of policy, with the median of fresh forecasts published on Wednesday still pointing to a half percentage point of rate cuts by year-end,

Federal Reserve officials expect inflation to worsen in the coming months but they still foresee two interest rate cuts by the end of this year, the same as they projected in March. The Fed kept its key rate unchanged for the fourth straight meeting Wednesday,