Federal Reserve Keeps Interest Rates Unchanged, Signals 2 Cuts This year

The U.S. central bank says the U.S. economy remains solid but the outlook has ‘diminished.’

Federal Reserve Board Chairman Jerome Powell holds a news conference following a Federal Open Market Committee meeting in Washington on June 18, 2025. Win McNamee/Getty Images

The Federal Reserve kept interest rates unchanged for the fourth straight meeting on June 18, a decision that financial markets widely expected.

The U.S. central bank left the benchmark federal funds rate—a key policy rate that influences consumer borrowing costs and the U.S. government’s debt-servicing payments—at a range of 4.25 percent to 4.5 percent.