Federal Reserve forecasts higher inflation amid ‘wait and see approach’

The Federal Reserve is forecasting higher inflation. At its June meeting on Wednesday, the Fed announced there will be no change in the interest rate.

For now, the rate will remain steady at a range of 4.25% - 4.5%, unchanged since January.

This latest interest rate decision is based on a “wait and see approach,” according to Chairman Jerome Powell.

While the Fed typically calculates rates based on keeping inflation low (though not 0%) and maintaining a healthy job market, Powell cited trade and tariff policies and Middle East conflict as “wild cards” to watch first for impacts before changing rates.

News 6’s Bridgett Ellison talked to Washington correspondent Karin Caifa for analysis and what it means for your money.