The recent FOMC meeting has concluded, and here are some key points to note:
FOMC Meeting Results
- *Interest Rate*: The FOMC maintained the federal funds rate at 4.25%-4.50% at their last meeting on March 19, 2025.
- *Interest Rate Cut Projections*: The FOMC projects the possibility of two interest rate cuts of 0.25% this year, potentially lowering the rate to a range of 3.75%-4.00% by year-end.
Impact on the Economy
- *Economic Growth*: The FOMC lowered its U.S. economic growth projection for 2025 to 1.7% from a previous estimate of 2.1%.
- *Inflation*: The FOMC's inflation projection for 2025 increased to 2.7%.
Next FOMC Meeting Schedule
- *Next Meeting*: The next FOMC meeting will be held on June 17-18, 2025.
- *Interest Rate Announcement*: The interest rate announcement is typically made at 18:00 UTC (14:00 ET) on the second day of the meeting.
What's Next?
- *Markets Anticipate Rate Cuts*: Markets anticipate the possibility of two interest rate cuts in the second half of 2025, with a strong likelihood that the first cut will occur in June.
- *Impact on Markets*: The FOMC's decisions can influence financial markets, mortgage rates, and economic growth.