As expected, the US Federal Reserve left the benchmark fed by the fund rate that stable at 4.25% -4.50% on Wednesday, the second consecutive pauses since three straight rates to the end of 2024.
The Fed’s Quarterly Economic ProjectionsAlthough, a sharp decline in expectations for economic growth, which increased GDP in 2025 which is now seen at just 1.7% compared to 2.1% in the December forecast. Growth insights for 2026 and 2027 are also to be.
“The uncertainty around the economic perspective has increased,” Fed said In an accompanying statement, which is likely a reference to the chaos surrounding the tariff regime threatened by President Trump.
Next to the slow growth, the Core PCE inflation is now visible at 2.8% this year compared to the previous 2.5% projection. The main insights on inflation for 2026 and 2027 were left at 2.2% and 2.0%, respectively.
The “DOT Plot” – which shows the views of FOMC members for which interest rates can land – still see the Fed fund rate ending this year at 3.9%, similar to December forecasts. The termination of Fed funds for 2026 and 2027 continues to be expected at 3.4% and 3.1%, respectively.
The Fed also said that the speed of the Securities of the Securities from its balance-up-called tightening-start-start on April 1. The fall of Treasury’s role was then trimmed to just $ 5 billion from $ 25 billion ago.
Bitcoin (Btc) will change the mind in minutes immediately following the release, but headed for less than the press time to $ 83,500 against just over $ 84,000 before the news.
US stocks continue to hold solid acquisitions and Treasury’s 10-year yield has sank two basis points to 4.28%.
Risk ownership has been beaten over the past few weeks as it recalls President Trump’s tariff threats and its detected impact on inflation and economic growth to weigh in on investor’s feelings. The fed to turn hawkish to December and January The meetings also quash the hope of more spacious financial conditions for the near term, posing headwinds for cryptocurrencies and stocks.
Fed Chair Jerome Powell will speak at 2:30 PM Eastern Time (18:30 UTC) with entrepreneurs monitoring the press conference for further clues of the financial policy perspective.
