The U.S. Federal Reserve will release new economic projections that indicate the effects of Trump’s tariffs on growth, heightening recession and inflation risks. Analysts, including U.S. Bank’s chief economist Beth Ann Bovino, foresee challenges in maintaining a steady economic environment amid these developments.

Despite visible economic volatility, the Fed is likely to keep interest rates steady between 4.25% and 4.50%. Analysts predict a cautious outlook as uncertainties regarding the impact of the Trump administration’s tariffs on consumer behavior and overall market confidence continue to emerge.