The world's most powerful central bank is sticking to its forecast of two cuts in 2025.

The case is being updated.

The US Federal Reserve (Fed) is keeping its key interest rate unchanged, as expected, within the range of 4.25–4.50 percent. The central bank has kept its key interest rate unchanged since December last year.

In addition to the interest rate decision, the central bank presents forecasts, so-called dot plots. This is the Fed's response to Norges Bank's interest rate path. It states that the Fed still expects two interest rate cuts this year, according to Bloomberg.

In the interest rate decision, the central bank writes that uncertainty going forward has been reduced, but remains elevated.

Seven of the 19 participants in the interest rate committee stated that they did not want any interest rate cuts this year, up from four in March.

The Fed also offers new forecasts for the economy:

• GDP growth is expected to be 1.4 percent this year, compared to 1.7 percent in March.
• Inflation (PCE) is estimated to reach three percent in 2025, compared to the previously expected 2.7 percent.

– This is a central bank that expects a little more pain ahead, but Trump's policies and what we are facing are hitting the economy in unusual ways, says senior strategist Dane Cekov at Sparebank 1 Markets.

– They have cut their growth expectations, and have adjusted up their unemployment expectations. While the Fed in March expected it to increase to 4.4 percent this year, they are adjusting it up to 4.5 percent during the year. They also think it will stay there through 2026. Inflation also looks a little higher, he continues.

No rush

Federal Reserve Chairman Jerome Powell said at the last interest rate meeting in May that there is no urgency to cut interest rates. Partly because the Fed wants to see the effects of Trump's tariffs on the economy.

At the same time, inflation is still slightly above the target of around 2 percent. Core inflation, which is the Fed's most concerned about, landed at 2.8 percent in May.

The Fed is also targeting maximum employment. Since the last policy meeting, non-farm payrolls showed that 139,000 new jobs were created in May. The unemployment rate remained at 4.2 percent.

Criticism from Trump

Just hours before the decision, President Donald Trump lashed out at Jerome Powell, as he has done numerous times throughout the year. Trump believes Powell is stupid and that he would do a better job himself.

He also told reporters outside the White House that he did not expect the Fed to cut interest rates at today's meeting, Bloomberg reports. Trump said that a rate cut equivalent to 2.5 percentage points would be nice, or 5 individual cuts.

He repeats the message that Jerome Powell is not wanted as central bank chief when his term expires in May 2026. Trump believes Powell is too late to cut interest rates.