In the March 2025 meeting, the FOMC kept the federal funds rate at 4.25% - 4.50% with one dissenting vote. The committee decided to slow the pace of balance sheet reduction starting in April, lowering the monthly cap on the redemption of government securities to $5 billion.

The committee raised its inflation expectations for 2025, while it lowered growth expectations and raised unemployment expectations. The expected core inflation for personal consumption expenditures rose to 2.7% for 2025. Growth expectations were lowered to 1.7% in 2025, and unemployment expectations increased to 4.4% in the same year.

The committee also decided to slow the pace of balance sheet reduction, cutting Treasury securities redemptions to $5 billion per month to maintain ample reserves in the money markets.