Federal Reserve Expected to Hold Interest Rates Steady Amid Economic Uncertainty

The Fed faces inflation risks and trade policy impacts as it prepares to release updated economic projections.

The Federal Reserve is expected to maintain its benchmark interest rate at 4.25%-4.50% during its March 19, 2025, meeting.
Chair Jerome Powell has emphasized a cautious approach, citing uncertainty from President Trump's trade and fiscal policies, including tariffs and immigration changes.
Markets anticipate rate cuts later in 2025, with the first reduction expected in July, reflecting concerns about slowing growth and rising inflation.
The Fed will release updated economic projections, addressing inflation, GDP growth, and unemployment forecasts, providing insight into its policy outlook.
Analysts are questioning the Fed's independence as it navigates significant influence from the Trump administration's economic policies.