Overview

• The Federal Reserve has decided to keep interest rates unchanged at 4.25%-4.5% during its March meeting, as widely expected by analysts.
• Updated economic projections from the Fed include revised forecasts for inflation, GDP growth, and unemployment, reflecting ongoing trade policy uncertainty.
• Chair Jerome Powell emphasized a cautious, data-driven approach to future rate decisions, citing the need for greater clarity on economic conditions.
• Tariffs implemented by the Trump administration have contributed to market volatility, higher inflation expectations, and slowed job growth, complicating the Fed's dual mandate.
• Markets are pricing in a high likelihood of rate cuts beginning in July, with projections indicating up to 60 basis points of easing by the end of 2025.