The Federal Reserve sees inflation rising again to top 3% this year amid the uncertainty around President Donald Trump's trade policies and intensifying geopolitical risk.Federal Open Market Committee participants said at their June meeting that they expect the core personal consumption expenditures price index,

The Federal Reserve left interest rates unchanged for the fourth straight meeting, as its leaders projected weaker growth and higher inflation this year than they envisioned three months ago — but they continue to expect two rate cuts later this year.

Tariffs will likely push inflation higher in the months ahead. Powell, speaking at a press conference following the Federal Open Market Committee’s rate decision, emphasized the high level of uncertainty facing the economy but was much more certain about this specific inflation risk.