Despite Uncertainty, Fed Holds Rates Steady

2025-03-21 02:30:00 ET

Summary

• The Fed’s monetary policy committee left the target range of its policy rate unchanged at its March meeting on Wednesday. It has remained at 4.25-4.50 percent since December.
• This decision was widely expected by market participants, given that inflation remains stubbornly above the Fed’s two-percent target.
• The committee expects inflation to remain above target yet still anticipates cutting its policy rate by the end of the year.
• Powell also indicated that the Fed would reduce the speed with which the central bank has been shrinking its balance sheet.

By Bryan Cutsinger

The Federal Reserve’s monetary policy committee left the target range of its policy rate unchanged at its March meeting on Wednesday. It has remained at 4.25-4.50 percent since December. This decision was widely expected by market participants, given that inflation remains stubbornly above the Fed’s two-percent target....

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