The Federal Reserve held interest rates steady but signaled potential cuts later in the year.

The benchmark rate remains at 4.25%-4.5%, unchanged since December.

Despite concerns over tariffs and slowing growth, officials project two rate cuts by 2025.

The Fed also adjusted its bond-reduction strategy, slowing the pace of quantitative tightening.

Inflation expectations rose slightly, and economic growth projections were downgraded to 1.7% for 2024.

Markets reacted positively, with the Dow rising over 400 points.

Fed Chair Jerome Powell emphasized flexibility, stating rates could remain high if inflation persists, NBC News has reported.

Concerns over tariffs and labor market weakness add to economic uncertainty.

Written by B.C. Begley