The Federal Reserve kept its forecast for two rate cuts this year amid Trump's tariffs, which are expected to push up inflation and slow the economy

Federal Reserve officials raised their inflation forecasts in the June Summary of Economic Projections, reflecting a slower path back to the bank’s 2% target as price pressures and tariff uncertainty may be more persistent than anticipated.

Officials have assumed a wait-and-see approach until they have more clarity on how President Trump’s trade war, immigration crackdown and plans to slash taxes, among other policies, will effect the economy.