Federal Reserve Expected to Hold Rates Steady as March Meeting Concludes

Markets anticipate no immediate rate cuts, with projections suggesting two to three reductions later in 2025 amid persistent inflation and economic uncertainty.

• 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.

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