Federal Reserve message of stable inflation and possible rate cuts in 2025 calmed markets.

From Investing.com: 2025-03-20 06:08:00

The Fed kept rates unchanged and Chair Powell calmed markets by emphasizing solid data and stable inflation expectations, despite concerns about tariffs impact and stagflation. Quarterly forecasts suggest 50bps cuts in 2025. Markets had a positive equity reaction, but Trump’s rhetoric could reverse sentiment. The focus now shifts to US data and the BoE meeting, where a dovish outcome could impact the pound. Powell appears relaxed about inflation, using “transitory inflation” rhetoric to signal belief in short-lived price pressures and gradual normalization. The BoE meeting today could reveal a more dovish stance, with inflation above target and soft labor market data.



Read more at Investing.com: Markets Like Fed’s Message, but Will This Last?