The Fed kept the rate, but worsened forecasts for inflation and economic growth

The US Federal Reserve left the base interest rate at 4.25-4.5% per annum, which coincided with analysts' expectations. At the same time, the regulator revised forecasts for economic indicators. Inflation in the United States by 2025, according to updated data, is expected to reach 3% instead of 2.7%, and in 2026 – 2.4% instead of 2.2%. 

The unemployment rate is projected to be 4.5% in 2025 and 2026, exceeding previous expectations. Economic growth in 2025 has been reduced to 1.4% (previously 1.7%), in 2026 – to 1.6% (previously 1.8%).

The Fed noted that despite the reduction in uncertainty, the risks to the economic outlook remain high, and the regulator will continue to closely monitor the situation. Two more rate cuts are expected in 2023 amid the threat of stagflation.

Against the background of the Fed's decisions, US stock indexes showed growth. The Dow Jones Industrial Average gained 0.34%, the S&P 500 gained 0.25%, and the Nasdaq Composite rose 0.36%. At the same time, gold prices began to rise, rising by less than 0.1% and reaching $3,407.8 per ounce.