#FOMCMeeting FOMC Meeting: Key Takeaways

Wells Fargo Investment Institute shares key highlights from the Federal Open Market Committee meeting.

FOMC Meeting: Key Takeaways

March FOMC meeting | March 19, 2025

Policy Announcement

The Federal Open Market Committee (FOMC or the Committee) left the federal funds rate unchanged at 4.25% – 4.50%, continuing a pause on the interest-rate-cutting cycle that started in September. The Committee stated that uncertainty around the economic outlook has increased. The Summary of Economic Projections shows a decrease in gross domestic product (GDP) growth expectations while also showing an increase in inflation expectations for 2025. The Federal Reserve (Fed) will slow the pace of decline of its securities holdings beginning in April. It will reduce its holdings of U.S. Treasury securities to just $5 billion per month down from $25 billion currently. The monthly redemption cap on agency mortgage-backed securities will remain unchanged at $35 billion.

Stated reasons

Recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid. Inflation remains somewhat elevated.

In support of its goals, the Committee decided to keep the federal funds rate unchanged at 4.25%-4.50%. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate (price stability and full employment).

Looking forward

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook.

The Committee will continue to take into account a wide range of information including readings on labor market conditions, inflation pressures, inflation expectations, and financial and international developments.