Federal Reserve officials expect inflation to worsen in the coming months, but they still foresee two interest rate cuts by the end of this year, the same as they projected in March.

The Fed kept its key rate unchanged for the fourth straight meeting Wednesday and said the economy is expanding at “a solid pace.” Changes to the Fed’s rate typically — though not always — influence borrowing costs for mortgages, auto loans, credit cards and business loans.

The central bank also released its latest quarterly projections for the economy and interest rates. It expects noticeably weaker growth, higher inflation and slightly higher unemployment by the end of this year than it had forecast in March, before President Donald Trump announced sweeping tariffs April 2. Most of those duties were then postponed on April 9.

So far, inflation has continued to decline this year while some cracks have appeared in the economy, particularly in housing, where elevated borrowing costs are slowing sales and homebuilding.

Federal Reserve Board Chair Jerome Powell underscored that the Fed does expect Trump’s sweeping tariffs to push up prices by the end of this year and the central bank wants to hold off on any moves until the impact of the duties becomes clearer.

“We have to be forward- looking,” he said. “We expect a meaningful amount of inflation to arrive in coming months and we have to take that into account. Because the economy is still solid, we can take the time to actually see what’s going to happen.”

Nippon closes deal for U.S. Steel

Nippon Steel closed its $14.1 billion acquisition of U.S. Steel, bringing an end to a bruising takeover battle that was embroiled in American politics for months until finally gaining support from President Donald Trump.

The transaction closes exactly 18 months after the two steelmakers first announced their surprising tie-up, a timeline veteran traders called one of the most unique they’ve ever witnessed. The controversial deal weathered two presidential administrations, union opposition, an expensive lobbying campaign and two U.S. security panel reviews.

Nippon Steel’s $55-a-share acquisition creates the world’s second-largest steelmaker. The companies struck a conditional deal with the Trump administration Friday that saw the Japanese steelmaker agree to invest an additional $11 billion in the Pittsburgh-based producer.

Nippon Steel and U.S. Steel struck a National Security Agreement with the U.S., in which U.S. Steel will issue a so-called golden share to the government. The golden share gives consent rights to the U.S. president concerning reductions in capital investments, changing U.S. Steel’s name and headquarters, redomiciling outside the U.S., transferring jobs or production outside the U.S., acquisitions and decisions to close or idle existing facilities.

At Home closing 8 California stores

The home decor retailer At Home will shutter eight of its California stores as it reorganizes in bankruptcy, according to documents filed in Wilmington, Delaware.

The Texas-based company, with $2 billion in debt, blamed a “rapidly evolving trade environment” and the “impact of tariff policies” for its decision to restructure and downsize.

At Home said it will close 26 stores nationwide by the end of September. With 13 stores in California, the retailer had auspicious plans to add at least 80 to the state when it first expanded to Southern California in 2019.

Stores on the closure list include three locations in Orange County and one in Long Beach, Pasadena, San Jose, Chico and Sacramento.

In the bankruptcy filing, At Home said it would transfer ownership of the Coppell, Texas-based company to its lenders. In return, at least $200 million will be set aside to keep stores operational during the reorganization.

Amazon sets big goal for robotaxies

Amazon hopes to deliver 10,000 robotaxis annually with new factory, challenging Waymo | Amazon is gearing up to make as 10,000 robotaxis annually at a sprawling plant near Silicon Valley as it prepares to challenge self-driving cab leader Waymo.

Tesla CEO Elon Musk is also vying to join the autonomous race. The 220,000-square-foot robotaxi factory announced Wednesday heralds a new phase in Amazon’s push into a technological frontier.

Amazon began eyeing the robotaxi market five years ago when it shelled out $1.2 billion for self-driving startup Zoox, which will be the brand behind a ride-hailing service that plans to charging for rides in Las Vegas late this year.

Meanwhile, Waymo’s robotaxi service has already given more than 10 million paid rides since 2020, according to records.

Compiled from Associated Press, Bloomberg and staff reports.