From Yahoo Finance: 2025-03-21 13:27:00

Federal Reserve officials, including Chair Jerome Powell, downplay recent rise in long-term inflation expectations, citing high uncertainty. Labor market and growth remain solid, with potential short-lived inflationary impact from tariffs. University of Michigan survey shows consumer expectations for inflation at 3.9%, highest in three decades. Fed monitors long-term inflation expectations closely. Some Fed officials argue they can look through price shocks from tariffs if inflation expectations remain stable. High level of uncertainty over rapid changes to immigration, trade, and fiscal policy’s impact on the economy. Fed officials maintain current monetary policy stance is appropriate. Fed will continue to monitor the economy for any necessary adjustments. Some Fed officials believe tariffs could boost inflation, but uncertainties remain over final levies and economic response. Fed anticipates growth moderation this year with higher unemployment and inflation in 2025. Policymakers leave borrowing costs unchanged, no immediate plans to adjust rates. Fed to slow balance sheet reduction pace, allowing up to $5 billion in Treasury securities to mature each month without reinvestment. Fed Governor dissents on balance sheet decision, stating banking system still has enough reserves. Fed continues efforts to shrink portfolio, with no implications for monetary policy.



Read more at Yahoo Finance: Fed Officials Echo Powell, Downplay Rising Price Expectations