US Fed Holds Interest Rates, Focuses on Economic Stability

By 5paisa 20 Mar 2025

The US Federal Reserve keeps interest rates at 4.25–4.50% amid concerns about rising inflation due to President Trump’s tariff policies.

Fed Chair Jerome Powell highlights the risk of higher inflation driven by Trump’s tariffs, despite uncertainty on their full impact.

The Fed's 'dot plot' indicates plans for two quarter-point rate cuts in 2025, despite concerns over inflationary pressures.

The Fed acknowledges rising economic uncertainty and reduces the pace of securities holdings adjustments, lowering the Treasury cap to $5 billion.

The Fed raises its core inflation estimate to 2.8% by 2025 and lowers its economic growth forecast to 1.7%, down from 2.1%.

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