From Yahoo Finance: 2025-03-19 14:22:00

The Federal Reserve decided to keep interest rates steady, but hinted at potential rate cuts later this year due to slowing economic growth and inflation concerns. The Fed also adjusted its outlook for inflation to 2.7% by year-end, while lowering the growth forecast for this year to 1.7%.

Fed Chair Jerome Powell emphasized that the U.S. is not facing high inflation like in the 1970s. The Fed will slow down its balance sheet reduction starting next month, known as quantitative tightening.

Market reaction saw the S&P 500 rise 1.07%, while bond yields fell. The dollar index rose slightly, while the euro saw a slight decline.

Analysts noted the Fed’s cautious tone in light of economic uncertainties, tariffs, and the possibility of stagflation. The Fed is expected to maintain current interest rates until there is clearer data on economic conditions.



Read more at Yahoo Finance: Fed doesn’t change rates, will slow pace of balance sheet reduction