Fed Meeting Live: Central Bankers Not Expected to Cut Interest Rates Today
Federal Reserve Leaves Its Interest Rate Untouched For Second Consecutive Meeting
Just Now
The Federal Open Market Committee held the fed funds rate at a range of 4.25% to 4.5% at its meeting Wednesday.
This is the second meeting in which officials have left their influential interest rate unchanged. In January, the committee ended a three-meeting streak of rate cuts by standing pat.
The fed funds rate influences borrowing costs on all kinds of loans including credit cards, auto loans and personal loans.
Summary of Economic Projections May Not Provide Many Clues
22 minutes ago
The statement released after March’s meeting concludes on Wednesday is scheduled to include a Summary of Economic Projections (SEP). The SEP is released four times a year after every other FOMC meeting.
The economic projections are a snapshot of where the 19 committee members think the economy is headed. The most closely watched element of the SEP is the “dot plot,” in which members project the future fed funds rate. Economists typically find the median of the projection to give an idea of the federal fund rate’s path.
However, this time, it may be murkier because of the Fed’s holding pattern and uncertainty in the economy.
Why Is the Fed Hesitant to Cut Rates?
45 minutes ago
Uncertainty seems to be spreading through the economy, and the Fed is seemingly not immune.
Some of President Donald Trump’s proposed economic policies have stoked uncertainty, undermined confidence among business leaders and consumers, sent stocks tumbling, and raised fears of a possible economic downturn.
The Fed is reluctant to act until there is more clarity on which of President Trump’s tariff threats will be implemented and the impact those tariffs will have on inflation and economic growth.
There’s a 99% Chance the Fed Will Its Influential Interest Rate Flat Today
1 hr 1 min ago
Financial markets are overwhelmingly betting the Fed will hold its benchmark federal funds rate at a range of 4.25% to 4.5% today.
According to the CME Group’s FedWatch tool, which forecasts rate movements based on fed funds futures trading data, there is a 99% chance that the Fed won’t change its key interest rate, which influences borrowing costs of all kinds.
It would be the second meeting in a row that the Federal Open Market Committee stood pat. In January, the FOMC kept the rate unchanged after cutting it by a percentage point over the previous three meetings.
Read more about what to expect from the Fed’s interest rate policy decision here.