The Federal Reserve left rates of interest unchanged on Wednesday for a second straight assembly. The March assembly was the central financial institution’s most direct acknowledgment so far that President Trump’s insurance policies are set to have an actual impression on the financial system, stoking vital uncertainty about the place inflation, progress and — finally — rates of interest are headed. Listed below are the takeaways:

• Tariffs took heart stage throughout the information convention with Jerome H. Powell. The Fed chair went so far as saying that tariffs doubtless imply “additional progress could also be delayed” on getting inflation again to the central financial institution’s 2 % goal. That recognition materialized within the increased inflation forecasts that officers penciled into new financial projections. By the tip of the yr, officers estimate that core inflation, which strips out risky meals and power costs, will keep caught at 2.8 %, earlier than declining to 2.2 % in 2027.

• Fed officers paired their increased inflation forecast with decrease estimates for financial progress, at the same time as they caught with earlier projections that they’d be capable of decrease rates of interest by a half level this yr, delivering two quarter-point cuts. The vary of doable outcomes was broad, nonetheless, with eight policymakers forecasting both no extra cuts or only one this yr. Solely two thought the Fed would decrease charges by 0.75 proportion factors, or three cuts of 1 / 4 level this yr.

• In current months, Mr. Powell has been adamant that the Fed is nicely positioned to reply to sharp shifts within the trajectory for the financial system and will afford to be affected person about making price choices given the strong basis of the labor market. He reiterated that time, pushing again on the souring of client expectations about inflation and financial system that has proven up in current survey knowledge.

• Whereas the trail ahead for rates of interest and the financial system was the primary focus of the March assembly, the Fed’s choice to sluggish the tempo at which it’s lowering its stability sheet drew some consideration. Mr. Powell mentioned the concept was to cut back the potential of market ructions in funding markets.