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

Growth appears to be slowing in the first three months of the year but the impact of tariffs on inflation hasn’t yet materialized.

Federal Reserve Chair Jerome Powell speaks to the Senate Banking Committee
Federal Reserve Chair Jerome Powell speaks to the Senate Banking Committee, Tuesday, Feb. 11, 2025, on Capitol Hill in Washington. (AP Photo/Jacquelyn Martin)
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UPDATED:

The Fed now expects the economy to grow more slowly this year.

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