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Federal Reserve sees tariffs raising inflation this year, keeps key rate unchanged

The Federal Reserve kept its benchmark interest rate unchanged Wednesday and signaled that it still expects to cut rates twice this year even as it sees inflation staying stubbornly elevated. The Fed also now expects the economy to grow more slowly this year and next than it did three months ago, according to a set of quarterly economic projections also released Wednesday. Eight of the 19 Fed officials said they see only one or zero rate reductions this year, up from just four in December.

Traders Pull Back on Rate-Cut Bets as They Seek Clarity From Fed

(Bloomberg) -- Traders are ratcheting back wagers on US interest-rate cuts as they seek clarity from the Federal Reserve amid a thicket of economic and political crosscurrents.Most Read from BloombergThe Dark Prophet of Car-Clogged CitiesWashington, DC, Region Braces for ‘Devastating’ Cuts from CongressNYC Plans for Flood Protection Without Federal FundsA Malibu Model for Residents on the Fire FrontlinesJust one week ago, US short-term futures markets reflected expectations for almost three-quar