Fed Keeps Interest Rates Unchanged, As Expected
"To achieve its objectives, the Committee decided to maintain the target range for the federal funds rate at 4.25%–4.50%.
This marks the second pause in the monetary tightening cycle, as the central bank also left interest rates unchanged in January.
Prior to that, the Fed had implemented three consecutive rate cuts on September 18, November 7, and December 18 of last year.
On Wednesday, the Federal Reserve (Fed) announced its decision to maintain interest rates within the 4.25%–4.50% range, aligning with market expectations.
“To achieve its objectives, the Committee decided to maintain the target range for the federal funds rate at 4.25%–4.50%.
When considering the extent and timing of any further adjustments to this range, the Committee will carefully assess incoming data, economic outlook developments, and risk balance,” the Federal Open Market Committee (FOMC) stated in its post-meeting release.
FOMC Decision Criteria
According to the FOMC, the decision was based on recent indicators suggesting that “economic activity has continued to expand at a solid pace. The unemployment rate has remained low in recent months, and labor market conditions remain strong. Inflation remains somewhat elevated.”
The decision comes amid heightened uncertainty due to a lack of clarity regarding economic policies, particularly tariffs. President Donald Trump has indicated that the U.S. will implement “reciprocal tariffs” on imported goods starting April 2, a move that could impact trade relations with key partners.
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