Summary:
The Fed is likely to keep rates unchanged, with forecasts reflecting changes in views on inflation and the economy, amid tariff-driven price hikes.
The Fed's Mar meeting
19/3/2025 (Wed)
Previous(Jan): 4.5% Forecast: 4.5%
The Fed is widely expected to hold its policy rate steady at its upcoming meeting. New policymaker forecasts, however, will reflect changes in their outlook about the economy and inflation.
They have said they will respond if the unemployment rate rises unexpectedly, but they need to see more progress on inflation and have their eyes fixed squarely on inflation expectations as an added upward risk.
Risks are growing that tariffs will cause a fresh spike in prices, consumer sentiment is souring rapidly, spending is slowing, and once-small cracks in the labour market appear to be widening.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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