From CNBC: 2025-03-19 14:23:15

The Federal Reserve kept interest rates steady, hinting at potential reductions later this year amidst concerns over tariffs impacting the slowing economy. Officials project two rate cuts in 2025, downgrading economic growth outlook and raising inflation expectations. The Fed also scaled back bond reduction and warned of increased uncertainty.

Fed Governor Christopher Waller dissented in the decision to keep rates steady while reducing the bond reduction program. President Trump’s tariffs have caused market volatility, with consumers showing concern over inflation. Despite this, Bank of America CEO Brian Moynihan remains optimistic, stating the economy is growing better than perceived. However, cracks are showing in the labor market.

Read more: Fed holds interest rates steady