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The Federal Reserve held interest rates steady on Wednesday, as expected, but U.S. central bank policymakers indicated they still anticipate reducing borrowing costs by half a percentage point by the end of this year in the context of slowing economic growth and, eventually, a downturn in inflation. Taking stock of the Trump administration’s rollout of tariffs, Fed officials actually marked up their outlook for inflation this year, with their preferred measure of price increases expected to end the year at 2.7% versus the 2.5% pace anticipated in December. The Fed targets inflation at 2%. But they also marked down the outlook for economic growth for this year from 2.1% to 1.7%, with slightly higher unemployment by the end of this year. Policymakers said risks had increased, with a near unanimous sentiment in saying the outlook for the year was muddled. “Uncertainty around the outlook has increased,” the Fed said in a new policy statement that accounts for the first weeks of the new Trump administration and the initial rollout of what White House officials say will ultimately be global tariffs on imported goods. The Fed left its policy rate in the 4.25%-4.50% range. U.S. stocks extended their gains slightly after the release of the Fed’s policy statement and projections, with the Dow Jones industrial average up 0.5% and the tech-heavy Nasdaq Composite up 0.7%. U.S. interest rate futures priced in a cut of just over half a percentage point this year, with traders seeing a 62.1% chance of the Fed resuming rate cuts at its meeting in June, according to LSEG estimates, compared with a 57% chance before the announcement. The dollar pared some of its earlier gains, with an index of major currencies up 0.5%. U.S. Treasury yields also eased slightly, with the benchmark 10-year note yield up 1.7 basis points on the day to 4.298%. “The Fed is as lost in the wilderness as the rest of us trying to decipher the continual shifts in economic policy from 1600 Pennsylvania Avenue,” said Inflation Insights’ Omair Sharif, referring to the street address of the White House. “Beyond the cut to median growth this year and the boost to median inflation, the most telling aspect of the (projections) is the shift higher in uncertainty.” Lower growth, higher unemployment The Fed also said it will slow the ongoing drawdown of its balance sheet, known as quantitative tightening. Fed Governor Chris Waller dissented from the policy statement because of the change in balance sheet policy. The rate projections matched the expectations set by financial markets ahead of the meeting, and kept intact the Fed’s general outlook that gradually slowing inflation will allow further monetary policy easing. But it may be a rockier road getting there. While not mentioning President Donald Trump or tariffs in the statement, the Fed projections for higher inflation this year coincide with the unveiling of his tariff plans. It appeared, though, that the central bank for now is looking through the price shift involved in those import taxes, treating them as a one-off change rather than a persistent source of price pressures. Underlying inflation beyond 2025 was unchanged from the Fed’s projections in December, expected to return to 2% by the end of 2027. The projection for rate cuts beyond this year was also unchanged, hitting 3.1% by the end of 2027, near the level seen as having a neutral effect that neither encourages or discourages spending and investment. The Fed cut its benchmark interest rate by a full percentage point last year, but has kept rates on hold this year as it waits for further evidence that inflation will continue to fall, and, more recently, for more clarity about the impact of Trump’s policies. Compared to Trump’s promise of a coming economic “golden age” because of his push to impose tariffs, deport large numbers of immigrants and loosen regulations, the Fed’s outlook forecasts growth at 1.7% this year and just 1.8% in both 2026 and 2027, with the unemployment rate at 4.4% this year and 4.3% in 2026 and 2027. The unemployment projections are above the lows of recent years and the latest reading of 4.1% in February. Howard Schneider and Ann Saphir, Reuters
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The climate tech sector is at a crossroads. We have the tools we need to fight climate change, but the real challenge is scaling and deploying them. This is where climate-curious outsiders play a crucial role. At Epic Cleantec, a company I cofounded to tackle water scarcity through innovative reuse technology, none of us came from an environmental background. That outside perspective turned out to be a huge advantage. When I began this journey, I didn’t know much about water. I wasn’t a trained environmental or civil engineer, which meant I never even learned about how things were traditionally done. This lack of traditional expertise freed us from being tied down by how things were “supposed” to work, allowing us to find fresh solutions to persistent problems. My path to climate tech was anything but linear. I had flirted with a wide range of disparate career paths spanning veterinarian, chef, club promoter, historian, political lobbyist, and lawyer. I even briefly entertained becoming a rabbi, until my own rabbi convinced me not to take that path. Unsurprisingly, I often faced skepticism at conferences and industry events, where our company’s unconventional approach was met with doubt. But here’s the key takeaway: Solving the climate crisis isn’t just about creating new technology. It’s about turning these innovations into practical, widespread solutions. That’s where operational know-how comes insomething outsiders often bring to the table. People who’ve run businesses, managed complex regulations, and scaled global operations have the experience to make climate solutions a reality. Why climate tech needs outsiders The climate tech industry has largely been driven by environmental scientists and policymakers. But solving the climate crisis calls for more than just scientific advancesit requires major business transformation. To truly deploy climate solutions on a global scale, we need the same expertise that turned industries like fintech, e-commerce, and cloud computing into giants. Investors get it. BlackRock CEO Larry Fink predicts the next wave of unicorns will come from climate tech. But to build these companies, we need more than passion. We need professionals who understand scalingproduct managers who can push out software, operations experts who can optimize supply chains, and strategists who know how to drive rapid market adoption. The idea that climate tech needs deep environmental knowledge is a misconception. Whats truly needed are professionals who know how to turn great ideas into sustainable, scalable businesses, all while navigating complex regulations. The future of climate impact depends on commercial success. The solutions are ready, they just need deployment A lot of the technology needed to curb emissions and build climate resilience is already here. From energy storage to electrification, water reuse to regenerative agriculture, many solutions are ready to go. So, the challenge isnt really about innovation; its about implementation. Just look at how SaaS and fintech industries scaled quickly by leveraging automation, networks, and efficient capital use. If we applied those same strategies to climate tech, we could meet our climate goals much faster. Imagine applying the lessons learned during the rapid growth of ride-sharing or cloud services to solar energy, battery tech, or industrial decarbonization. Climate tech isnt just about better tech; its about changing systems. It requires navigating complex regulations, aligning with ever-changing corporate sustainability goals, and getting entrenched industries on board. Outsiders who have scaled companies in heavily regulated fields like healthcare, finance, and transportation are particularly equipped to drive this change. A crucial moment for climate tech Climate tech isnt a niche anymoreits becoming one of the most exciting frontiers of innovation. As more professionals from traditional tech and business sectors seek out purpose-driven careers, climate tech offers a unique blend of meaning and market opportunity. The influx of outsiders isnt just helpful, its essential. For climate tech to thrive, we need to embrace professionals with diverse and wide-reaching expertise. Industry leaders must actively recruit people with transferable skills, and investors must see the value in teams that blend technical knowledge with business acumen. Solving the climate crisis isnt just about inventing new technologiesits about getting them into the world at scale, fast. The opportunity is huge, but the urgency is even greater. To meet global climate goals, we must think outside the box and bring in the people who are ready to challenge the norms. For those climate-curious, theres never been a better time to dive in because climate tech isnt just the future of innovation, its the future of business. The Fast Company Impact Council is a private membership community of influential leaders, experts, executives, and entrepreneurs who share their insights with our audience. Members pay annual membership dues for access to peer learning and thought leadership opportunities, events and more.
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Amtrak CEO Stephen Gardner said Wednesday he will step down immediately after more than four years as head of the U.S. passenger railroad, citing concerns about maintaining the carrier’s support from President Donald Trump‘s administration. “I am stepping down as CEO to ensure that Amtrak continues to enjoy the full faith and confidence of this administration,” Gardner said in a statement. Billionaire Elon Musk, who is advising Trump on plans to radically shrink the U.S. government, said earlier this month he thought Amtrak should be privatized. The White House and Transportation Department did not immediately comment on whether the administration had asked Gardner to step down. Amtrak did not respond to a request for comment. Trump during his first term repeatedly sought to cut funding to Amtrak, which received about $2.4 billion in annual federal support in 2023. Congress last week approved $2.42 billion for Amtrak through September 30 in annual funding. Amtrak said in December ridership topped 2019 pre-COVID-19 levels for the first time in 2024 and reached a record high even with less capacity. Ridership increased over 15% in 2023 to a record 32.8 million customer trips, as passenger revenue hit $2.5 billion, up 9% over the prior year. The rail operator reported an adjusted operating loss of $705 million for the 12 months ended September 30, down 9% versus 2023. Amtrak in March said it was boosting passenger services on the East Coast as it aims to double ridership nationwide by 2040 to 66 million passengers. Congress approved $66 billion for rail projects as part of a massive infrastructure bill in 2021, with $22 billion dedicated to Amtrak over five years on top of regular funding. In 2023, then President Joe Biden announced $16.4 billion in grant funding for 25 rail projects on Amtraks Northeast Corridor — Boston to Washington — which is the busiest U.S. rail corridor with 800,000 daily trips in a region representing 20% of the U.S. economy. Many bridges, tunnels and other parts of the corridor are in serious need of repairs, especially a key tunnel connected New York City and New Jersey. David Shepardson, Reuters
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