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US Federal Reserve Meet: Stay updated on the US Fed meeting today and the anticipated interest rates outcome. Learn how changes in the Fed’s policy may impact the economy and markets.
US Fed Meeting Updates.
US Fed Meeting: The US Federal Reserve is set to announce its decision on key interest rates shortly, at 11:30 pm IST. Analysts expect FOMC to maintain status quo for the second time in a row. Following rate decision, US Fed Chairman Jerome Powell will address the media shortly.
Ahead of the meeting, the US stock markets are trading higher than the previous day though they is off their day highs. The Down Jones were trading 0.32 per cent higher and the Nasdaq was up by 0.68 per cent at 11:06 pm (IST).
The dollar index was also trading 0.58 per cent higher at 103.84. The benchmark US 10-year bonds were up by 0.035 at 4.318 per cent.
Suresh Darak, founder of Bondbazaar, said, “It’s extremely difficult to predict inflation trajectory and the course of the US economy post Trump taking over as the President of US. At the outset, growth projections have been lowered and inflation has been falling, and therefore rate cuts by the Fed remain a continued possibility, despite the 1% reduction done last year. However, Mr Powel’s conundrum would be the same as everyone else:- the impact of President Trump’s unpredictable tariff moves. Tariffs are widely expected to adversely impact inflation and slow down the economy, but assessment of the impact of the same remains to be seen. US 10 yr rates have also gone down by ~20 bps over the last 1-2 mths.”
Majority of the market is expecting no rate changes in today’s policy by the Fed, however there’s still a possibility that the data driven Fed may cut rates acknowledging the slowing economic conditions and inflation trajectory, he added.
The US unemployment rate edged up to 4.1% in February and the economy added 151,000 jobs. Inflation remains above the Fed’s 2% target with a coming read for February expected to show a slight increase, but policymakers so far have continued to bank on a drop this year.
The US FOMC meeting comes at a time when there is a global economic uncertainties amid trade war. According to analysts, US Fed officials face the difficult task of figuring out how the economy will ultimately respond to Trump’s tariffs.
Analysts have already pointed to higher inflation and weaker growth this year, a toxic duo resembling “stagflation”.
Central bankers are almost certain to hold interest rates steady at the conclusion of their March meeting on Wednesday, and Fed Chair Jerome Powell will likely reiterate that the economy remains in decent shape, but their latest projections will probably show the economy is trending toward stagflation, economists say.
The Fed is widely expected to keep interest rates steady at 4.25%-4.50%, following three consecutive rate cuts in 2024.
Since Trump took office in January, his administration has overhauled trade policy, slashed the federal workforce, clamped down on immigration and reconfigured America’s relationship with its allies — structural changes that have put American consumers, businesses and investors on edge. During that time, major stock indexes went from hitting record highs to slipping into correction territory and consumer sentiment went from an eight-month high to its lowest level since November 2022.
In the previous monetary policy review in January 2025, the US Federal Reserve had kept its key interest rates unchanged at 4.25-4.50 per cent.
Before that, on December 18, 2024, the US Fed had announced a cut in the key interest rates by 25 basis points to 4.25-4.50 per cent. It was the third rate cut by FOMC in three months, with the first rate cut announced in September (by 50 basis points) and second in November (by 25 bps). The first cut in the current rate cut cycle came in September after 2024 a gap of four years.
