Fed votes to hold rates steady, notes 'uncertain' impacts from Iran war

• Fed held interest rates steady at 3.5%-3.75% (11-1 vote).
• Noted 'uncertain' impacts from Middle East developments on the U.S. economy.
• Projected one rate cut this year (to 3.4%) and another next year (to 3.1%).
• Revised headline inflation forecast to 2.7% (from 2.4%) and core inflation to 2.7% (from 2.5%).
• GDP projections were slightly raised for current and future years, indicating no significant hit from higher inflation.

The Federal Reserve voted to hold interest rates steady at 3.5%-3.75%, noting 'uncertain' impacts from the Middle East. Despite slightly higher inflation forecasts, the Fed maintained a positive economic outlook, projecting one rate cut this year and another next, alongside slightly raised GDP projections.