Federal Reserve Holds Rates Steady, Signals Cuts Later in 2025
The Fed maintains its benchmark rate at 4.25%-4.5% while projecting slower economic growth, persistent inflation, and potential rate reductions this year.
- The Federal Reserve left the federal funds rate unchanged at 4.25%-4.5% during its March 2025 meeting, citing a strong labor market and elevated inflation.
- Fed Chair Jerome Powell announced projections for two rate cuts in 2025, with the federal funds rate expected to drop to 3.9% by year-end.
- Inflation remains above the Fed's 2% target, with February's Consumer Price Index showing a 2.8% year-over-year increase.
- Tariff-related uncertainty continues to weigh on consumer and business confidence, although the Fed considers some tariff-driven inflation to be temporary.
- President Trump criticized the Fed's decision, urging rate cuts to counteract the economic impact of ongoing tariffs.
Forbes 
