Fed holds interest rates steady, still sees two cuts coming this year
Last edited Wed Mar 19, 2025, 02:50 PM - Edit history (1)
Source: CNBC
Published Wed, Mar 19 2025 2:00 PM EDT Updated Moments Ago
WASHINGTON – The Federal Reserve in a closely watched decision Wednesday held the line on benchmark interest rates though still indicated that reductions are likely later in the year.
Faced with pressing concerns over the impact tariffs will have on a slowing economy, the rate-setting Federal Open Market Committee kept its key borrowing rate targeted in a range between 4.25%-4.5%, where it has been since December. Markets had been pricing in virtually zero chance of a move at this week’s two-day policy meeting.
Along with the decision, officials updated their rate and economic projections for this year and through 2027 and altered the pace at which they are reducing bond holdings.
U.S. federal funds target rate
Despite the uncertain impact of President Donald Trump’s tariffs as well as an ambitious fiscal policy of tax breaks and deregulation, officials said they still see another half percentage point of rate cuts through 2025. The Fed prefers to move in quarter percentage point increments, so that would mean two reductions this year.
Read more: https://www.cnbc.com/2025/03/19/fed-rate-decision-march-2025.html
Article updated.
Original article/headline -
Published Wed, Mar 19 2025 2:00 PM EDT Updated 2 Min Ago
WASHINGTON – The Federal Reserve in a closely watched decision Wednesday held the line on benchmark interest rates though still indicated that reductions are likely later in the year.
Faced with pressing concerns over the impact tariffs will have on a slowing economy, the rate-setting Federal Open Market Committee kept its key borrowing rate targeted in a range between 4.25%-4.5%, where it has been since December. Markets had been pricing in virtually zero chance of a move at this week’s two-day policy meeting.
Along with the decision, officials updated their rate and economic projections for this year and through 2027 and altered the pace at which they are reducing bond holdings.
Despite the uncertain impact of President Donald Trump’s tariffs as well as an ambitious fiscal policy of tax breaks and deregulation, officials said they still see another half percentage point of rate cuts through 2025. The Fed prefers to move in quarter percentage point increments, so that would mean two cuts this year. In its post-meeting statement, the FOMC noted an elevated level of ambiguity surrounding the current climate.
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He did the same during his first term when the rates were being hiked up off of near the 0% baseline after the previous GOP-generated Recession that a Democrat (Barack Obama) got us out of, had come to an end. He whined and whined and the rates were finally held steady.
And then COVID hit, and yet another tsunami of a GOP economic disaster hit and the rates were quickly dropped back down to near zero, before they were finally increased again under Biden until finally being held steady, and finally dropped in a couple cuts.
