Fed keeps rates steady, expects slower growth, higher inflation, potential for rate cuts

From Yahoo Finance: 2025-03-19 15:59:00

Federal Reserve officials decided to keep interest rates steady as they navigate economic slowdown concerns and high inflation worries due to President Trump’s policy changes. The Fed held the benchmark rate at 4.25%-4.5% and slowed the balance sheet reduction pace. New projections show lowered growth forecasts but increased inflation estimates, with a potential for two rate cuts this year. Officials are monitoring inflation driven by tariffs and consumer sentiment, while investors react negatively to trade war fears. The Fed is also adjusting the balance sheet strategy, aiming to ease potential money market strain.



Read more at Yahoo Finance: Fed Holds Rates Steady, Sees Slower Growth and Higher Inflation