The Federal Reserve held interest rates steady on Wednesday, as expected, but U.S. central bank policymakers indicated they still anticipate reducing borrowing costs by half a percentage point by the end of this year in the context of slowing economic growth and,

Fed Chair Jerome Powell had previously avoided commenting on Trump’s tariff threats and other sweeping moves, but those policies are increasingly shaping prospects for the economy this year. That means central bank policymakers had to at least partially show their hand on what they think new tariffs will mean for inflation,

The U.S. central bank held interest rates steady on Wednesday, and while its policymakers indicated they still expect to reduce borrowing costs by half a percentage point by the end of this year, Federal Reserve Chair Jerome Powell made it clear they would wait for more clarity on Trump administration policies.

The 99% chance the U.S. Federal Reserve was going to hold interest rates steady as recession fears rose became a certainty. The Fed decision was the first since new tariffs set off a trade war and stock volatility.

The Federal Reserve on Wednesday kept interest rates unchanged as central bank officials weigh the impact of President Donald Trump’s aggressive economic agenda.