The U.S. Federal Reserve held key interest rates steady Wednesday but said it still sees the possibility of two cuts later this year, with expectations that President Donald Trump's tariff policies will spike inflation.

The decision on interest rates was expected, but the economic forecasts are a bit worse than back in March. The Federal Reserve left interest rates unchanged on Wednesday while forecasting higher inflation and lower economic growth for the remainder of 2025.

The Federal Reserve said Wednesday it will maintain the benchmark interest rate at its current range of 4.25% to 4.5%