Forexlive Americas FX news wrap 19 Mar: Fed keeps rates unchanged. See two cuts in 2025
Nick Timiraos has his review on the meeting at the Wall Street Journal (gated):
Fed Projections Show Economy Radically Changed by Trump’s ElectionOfficials now project weaker economic growth, higher unemployment, and firmer inflation compared to their December forecasts, raising concerns about a mild form of stagflation.
Powell hinted some policymakers are becoming cautiousgrowing number of officials have scaled back their rate-cut expectations, reflecting heightened uncertainty about whether inflation will remain stickyFed officials initially underestimated inflation in 2021, believing it to be “transitory,” only to later hike rates aggressively. Now, with interest rates already at restrictive levels, the Fed must carefully assess whether trade-driven inflation is a short-term shock or a sustained threat.
The potential impact of tariffs and global supply chain adjustments could lead to prolonged price pressures.
Policymakers appear committed to a wait-and-see approach, prioritizing inflation control while remaining prepared to adjust policy if signs of a deeper slowdown emerge.Markets waiting ....
This article was written by Eamonn Sheridan at www.forexlive.com.Hence then, the article about fed faces uncertainty as stagflation concerns emerge was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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