The Federal Reserve is keeping interest rates unchanged for now but signals that rate cuts could be on the table before the end of the year.

Fed Chair Jerome Powell said the central bank expects to gain clearer insight this summer on key economic pressures, including the potential impact of tariffs and ongoing geopolitical tensions.

“We’ve got geopolitical events in the Middle East, there’s a lot of uncertainty about how tariffs will actually play out, in terms of whether that gives any upward pressure on prices,” said Kennesaw State economics professor Roger Tutterow.

Tutterow noted that while the Fed may lower rates, the effects on consumers aren’t always immediate. “Back in September we saw the Fed bring down short-term rates, and rates on longer-term borrowings, such as mortgages, actually didn’t come down in some cases, they went up,” he explained.

With inflation trends and international factors still unfolding, Powell says the Fed will monitor developments closely before making further policy decisions.

WSB’s Steve Summers contributed to this story