Federal Reserve Holds Rates Steady, Signals Possible Cuts in 2025

The Fed maintains its benchmark interest rate at 4.25%-4.50% as economic uncertainty grows due to trade policies and inflation concerns.

The Federal Reserve announced it will keep interest rates unchanged, citing economic uncertainty and inflationary pressures influenced by President Trump's tariffs and fiscal policies.
The central bank's updated projections include two potential rate cuts later this year, totaling 50 basis points, reflecting a cautious approach to monetary policy.
Economic forecasts were revised, with growth expectations for 2025 downgraded to 1.7% and inflation projections raised to 2.8%.
The Fed has scaled back its quantitative tightening program, reducing the monthly runoff of Treasury holdings from $25 billion to $5 billion to manage market liquidity.
Despite slowing growth, the labor market remains relatively strong, with 151,000 jobs added in February and unemployment at 4.1%.