#FOMCMeeting #FOMCMeeting

The Federal Open Market Committee (FOMC) convened in March 2025 and decided to maintain the federal funds rate at 4.25%–4.50%, pausing the rate-cutting cycle initiated in September 2024. This decision reflects ongoing economic uncertainties, particularly those arising from President Trump's trade policies, including tariffs on imports such as steel, aluminum, and various Chinese goods. These measures have contributed to elevated inflation levels, with consumer prices projected to rise to 2.8% this year, up from previous estimates. (Binance)

Additionally, the Fed announced plans to slow the pace of its balance sheet reduction to better manage market liquidity amid uncertainties surrounding the government's borrowing limit. Starting April 1, the Fed will lower the monthly cap on maturing Treasuries from $25 billion to $5 billion, while maintaining the $35 billion cap on mortgage-backed securities. (Binance)

The Fed's cautious stance aims to balance the dual mandate of promoting maximum employment and maintaining price stability, while navigating the complexities introduced by recent trade policies and their impact on the economic outlook. (Binance)