Fed Leaves Rates Unchanged Amid Economic Uncertainty

Mortgage rates will remain steady after the Fed left rates unchanged at its June meeting, as expected. The Fed maintained a forecast of two rate cuts in the second half of 2025, but a growing number of Fed officials also predicted no rate cuts this year, reflecting the growing uncertainty about the path of the economy.

Chair Powell emphasized that uncertainty remains the dominant theme for the economy, forcing the Fed to sit on the sidelines. The Fed’s latest “dot plot”—showing Fed officials’ projections about the economy and the path of interest rates—showed expectations of lower economic growth, higher unemployment, and higher inflation, relative to their expectations in March. It also showed that Fed officials are pretty divided and uncertain about the path for…