Fed meeting live updates: All eyes on whether central bank will keep forecast for 2 cuts this year

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The Federal Reserve is expected to keep a steady hand on interest rates, maintaining them at their target range of 4.25% to 4.5% when they release their decision at 2 p.m. ET on Wednesday.

This time, the Fed will detail the latest outlook for U.S. gross domestic product and the path of interest rates. A major development to watch is whether the policy-setting Federal Open Market Committee will keep its earlier outlook for two rate cuts this year. Inflation expectations will also be key as rising tensions in the Middle East lift oil prices.

Traders will also listen closely to Federal Reserve Chair Jerome Powell's press conference at 2:30 p.m., seeking insights on what may be ahead for interest rate policy and whether the central bank leader may address the White House's push for easier policy.

Where markets stand just before the Fed's decision

Stocks were modestly higher across the board just prior to the Fed's rate announcement.

The Dow Jones Industrial Average was up 150 points, or 0.35%. The S&P 500 was toting a 0.37% gain, and the Nasdaq Composite was up 0.48%.

-Darla Mercado

President Trump says ‘stupid’ Powell ‘probably won’t cut’ rates Wednesday

As the Federal Reserve's rate decision neared, Trump critiqued Chair Jerome Powell, calling him "stupid."

Speaking outside the White House on Wednesday morning, Trump said he didn't expect central bank policymakers to cut rates at the conclusion of their June meeting.

"So we have a stupid person," Trump said of Powell. "Frankly, you probably won't cut today."

"Europe had 10 cuts, and we had none. And I guess he's a political guy, I don't know. He's a political guy who's not a smart person, but he's costing the country a fortune," Trump said.

Fed funds futures trading suggests the Federal Reserve will likely stand pat on rates Wednesday, keeping them at the target range of 4.25% to 4.5%.

Read more from CNBC's Jeff Cox on Trump's comments over rate policy here.

— Darla Mercado

As the Fed’s June meeting ends, watch for policymakers’ outlook as market catalyst

The Federal Reserve's outlook could be the big market-moving development on Wednesday.

Policymakers are widely expected to hold interest rates steady at the conclusion of their June meeting, but traders are eager to hear their latest outlook on the path forward for rates.

The Federal Open Market Committee will be issuing its Summary of Economic Projections, which includes policymakers' forecasts on inflation, economic growth and the unemployment rate. The Fed's closely followed "dot plot" is also part of the outlook, showing FOMC members' projections for interest rates.

The forecast comes at a critical time for the U.S. economy, which is grappling with uncertainty around President Donald Trump's tariff policy, mixed economic data and now a conflict between Israel and Iran that is pushing energy prices higher.

Read more from CNBC's Jeff Cox on what to expect from the Fed on Wednesday.

Darla Mercado

Where consumer rates stand before the Federal Reserve’s decision

The Federal Reserve is largely expected to stay put on interest rates, maintaining them at a target range of 4.25% to 4.5%, which is where they've been since December.

Even as rates are off their highs and the Fed put through three cuts in late 2024, borrowing costs remain relatively high for consumers.

During the week of June 13, rates on 30-year fixed mortgages are at 6.89%, according to MND. That's up from 4.29% during the week of March 11, 2022 — just before the Fed embarked on its rate-hiking campaign. Home equity loan rates are also high, sitting at 8.4% as of June 13, compared to 5.96% in March 2022, per Bankrate.

Credit card borrowers are also paying more on their balances, with rates hovering at 20.12%, per Bankrate. That's up from 16.34% in March 2022.

Higher rates have been good news for savers, however. Yields on money market funds were at 0.44% as of June 13, compared to 0.08% in March 2022, according to Haver. Five-year certificates of deposit have seen their annual percentage yields rise to 1.71% as of June 13, up from 0.50% in March 2022, Haver found.

Darla Mercado, Nick Wells

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