The Globe and Mail reports in its Thursday edition that the U.S. Federal Reserve kept interest rates unchanged at 4.25 per cent to 4.5 per cent for the second consecutive meeting, maintaining its forecast for two more cuts this year despite concerns about higher inflation and slower growth. A New York Times dispatch to The Globe reports that this decision extends a pause that began in January after cuts in late 2024. The Fed is navigating increased uncertainty in the economy amid policy changes from President Donald Trump, while still facing high inflation and a strong labour market. In its statement, the Fed conceded a more uncertain economic outlook but remained optimistic about ongoing economic expansion and a stable unemployment rate, noting that inflation remains elevated. Most officials expect interest rates to decline this year to 3.75 per cent to 4 per cent. Eight policy-makers predict no further cuts or just one, while only two expect a drop of 0.75 percentage point. By the end of 2026, rates are anticipated to fall to 3.25 per cent to 3.5 per cent, reaching around 3 per cent in 2027. Fed officials now expect the economy to grow 1.7 per cent this year, down from an earlier projection of 2.1 per cent.