Overview

• 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%.