Washington: The US Federal Reserve kept today’s rates unchanged within the range of 4.25% to 4.5%.

According to Qatar News Agency, policymakers at the Fed expect economic growth to slow to 1.4% this year, with the unemployment rate rising to 4.5% by the end of 2025, and inflation reaching 3% in 2025, which remains significantly above its current level.

While Fed officials still anticipate cutting interest rates by half a percentage point in total this year, they have slightly slowed the pace of future rate reductions. Currently, one 0.25% cut is projected in both 2026 and 2027, as part of a prolonged effort to bring inflation back down to the central bank’s 2% target.

According to the new projections, inflation is expected to remain elevated at 2.4% in 2026, before falling to 2.1% in 2027, with unemployment levels remaining relatively stable throughout.