#PowellRemarks

federal funds remained unchanged at 4.25%-4.5% during the March 2025 meeting, extending the pause in the interest rate cut cycle that began in January, and in line with expectations. Policymakers noted that uncertainty around the economic outlook has increased but still anticipate interest rate cuts of about 50 bps this year, similar to the December projections. Meanwhile, GDP growth forecasts have been revised down for this year to 1.7% from 2.1% seen in December. Growth projections have also been revised down for 2026 (1.8% vs 2%) and 2027 (1.8% vs 1.9%). Conversely, PCE inflation is projected higher in 2025 (2.7% vs 2.5%) and 2026 (2.2% vs 2.1) but the projection remains at 2% for 2027. The unemployment rate is expected to be slightly higher this year at 4.4% (vs 4.3%) but projections remain stable at 4.3% for 2026 and 2027. In April, The Fed will slow the pace of its securities holdings reduction by lowering the Treasury securities redemption cap from $25 billion to $5 billion.