Fed Faces Tricky Balancing Act on Rates With Economy Showing Resilience But Still Needing Support
• Fed making first interest rate decision since forecasting cuts in 2024 • Economists expect no change to rates now, but cuts later in the year • Rate hikes since last year have increased borrowing costs across the economy • GDP grew 3.3% last quarter, better than expected, reducing pressure for quick cuts • Markets at record highs on optimism for "soft landing" with lower inflation but no recession