19.3 Days Fed Holds Interest Rates Steady, Reveals Timing and Figures for Cuts This Year

At the conclusion of its second meeting of 2025, the U.S. Federal Reserve (Fed) decided to keep its benchmark interest rates unchanged, although it indicated that cuts could be made by the end of the year.

Facing risks related to tariffs and a slowing economy, the Federal Open Market Committee (FOMC) maintained the reference rate in the range of 4.25% to 4.5% - a level that has been upheld since December. The market also predicted that there was almost no chance the U.S. central bank would lower interest rates at this meeting.

The Fed's decision came after the U.S. stock market was shaken by Washington's continuous imposition of tariffs on global trade partners. The unstable situation is also weakening consumer confidence. Retail spending increased in February, although it was lower than forecast, but the underlying indicators still show that American consumers are weathering the geopolitical "storms."

Currently, some "cracks" have appeared in the labor market. Non-farm payrolls increased more slowly than estimated in February, and the measure tracking unemployment - which includes discouraged workers and those working under their potential - rose by 0.5% in February to the highest level since October 2021.