Ticker: Federal Reserve keeps interest rate unchanged; Purdue Pharma submits opioid lawsuit settlement plan

The Federal Reserve kept its benchmark interest rate unchanged Wednesday and signaled that it still expects to cut rates twice this year, though it said the outlook is more uncertain.

The Fed also now expects the economy to grow more slowly this year and next than it did three months ago, according to a set of quarterly economic projections also released Wednesday. It also expects the unemployment rate to tick higher, to 4.4%, by the end of this year.

Policymakers also expect inflation will pick up slightly this year, to 2.7% from its current level of 2.5%. Both are above the central bank’s 2% target.

“Uncertainty around the economic outlook has increased,” the Fed said in a statement released after its two-day meeting.

Purdue Pharma submits opioid lawsuit settlement plan

Purdue Pharma asked a bankruptcy judge late Tuesday to consider the latest version of its plan to settle thousands of lawsuits over the toll of the powerful prescription painkiller OxyContin, a deal that would have members of the Sackler family who own the company pay up to $7 billion.

The filing is a milestone in a tumultuous legal saga that has gone on for more than five years.

Under the deal the family members — estimated in documents from 2020 and 2021 to be worth about $11 billion — would give up ownership of the company in addition to contributing money over 15 years with the biggest payment up front.

Under the new version, plaintiffs will have to opt in to get full shares of the settlement. If they do not, they can still sue Sackler family members.

Originally Published: March 19, 2025 at 3:07 PM EDT