Overview

• The Federal Reserve is widely expected to maintain its federal funds rate at 4.25%-4.5% following its March meeting, continuing its cautious approach to monetary policy.
• Inflation remains above the Fed's 2% target, with February's rate recorded at 2.8%, contributing to the central bank's reluctance to signal aggressive rate cuts.
• Economic projections, including the Fed's 'dot plot,' will be released Wednesday, but analysts predict limited clarity on the timing of future rate adjustments.
• Markets project two to three rate cuts in 2025, with the first likely in June, though uncertainty surrounding trade policies and tariffs complicates forecasts.
• Fed Chair Jerome Powell is expected to emphasize the central bank's dual mandate of stable prices and maximum employment during his post-meeting press conference.