The Federal Reserve left interest rates unchanged on Wednesday for a second straight meeting, as officials stuck to their previous forecast for two more cuts this year despite bracing for higher inflation and slower growth.

The central bank’s decision to hold interest rates at 4.25 percent to 4.5 percent extends a pause that has been in place since January following a series of cuts in late 2024 that lowered borrowing costs by a percentage point.

The Fed voted at an highly uncertain moment for the economy amid an onslaught of policy changes from President Trump since he returned to the White House in January. The upheaval has created complications for the central bank, which is still struggling to stamp out stubbornly high inflation and now must contend with a drastically different set of circumstances as it tries to finish off the job without harming what still appears to be a solid labor market.

In a statement released on Wednesday, the Fed noted that “uncertainty around the economic outlook has increased” even as it maintained a positive tone about the state of the economy. It said that economic activity continued to expand at a “solid pace” as the unemployment rate “stabilized at a low level.” Inflation, meanwhile, was “somewhat elevated.”

Officials also shared a new set of economic projections capturing their most comprehensive analysis yet of how their outlook has evolved now that Mr. Trump has begun to implement his economic agenda.

Most officials still expect interest rates to decline this year to 3.75 percent to 4 percent, as was the case when projections were last published in December. But eight policymakers forecast either no additional cuts or just one. Only two thought the Fed would lower rates by 0.75 percentage points, or deliver three quarter-point reductions this year.

Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.

Thank you for your patience while we verify access.

Already a subscriber? Log in.

Want all of The Times? Subscribe.