As widely expected, the Federal Reserve held its policy rate at 4.25%-4.50% on Wednesday for a fourth straight meeting as the central bankers wait for further clarity in the evolving economic outlook.

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.

Federal Reserve officials left interest rates unchanged and continued to pencil in two rate cuts in 2025, saying uncertainty over the economic outlook was still high but had diminished.