Overview

• The Federal Reserve kept the federal funds rate unchanged at 4.25%-4.5% during its March 2025 meeting, as widely expected.
• Inflation forecasts for 2025 were raised to 2.8%, reflecting concerns over tariff impacts, which Fed Chair Jerome Powell described as uncertain and potentially transitory.
• The Fed signaled two possible rate cuts later in 2025 and scaled back quantitative tightening by reducing monthly Treasury bond roll-offs to $5 billion from $25 billion.
• U.S. GDP growth is now projected to slow to 1.7% in 2025, down from 2.8% in 2024, with unemployment expected to rise slightly to 4.4%.
• President Trump criticized the Fed's decision, urging immediate rate cuts to counter inflationary pressures linked to his administration's tariff policies.