The Federal Reserve kept its forecast for two rate cuts this year amid Trump's tariffs, which are expected to push up inflation and slow the economy

The Fed’s decision, along with new economic projections and a news conference with Jerome H. Powell, the chair, shed additional light on the path ahead for borrowing costs. The Fed sees little urgency to lower interest rates anytime soon.

There are good reasons to think the Federal Reserve would be preparing to cut interest rates this week due to recent improvements on inflation—if not for [the risk that tariffs pose to prices](

The Federal Reserve held its key interest rate steady for the fourth time this year on Wednesday, leaving its benchmark lending rate unchanged at a range of 4.25 percent to 4.5 percent. For homebuyers, this means that mortgage rates are likely to keep hovering around the 7-percent mark for the foreseeable future.

Stock markets were muted Wednesday. Oil slipped along with the dollar, even as the Israel-Iran conflict entered its sixth day.

Trump has aggressively campaigned for an immediate, full percentage point interest rate cut, but the Federal Reserve is highly unlikely to even signal willingness to do so this year.