Federal Reserve FOMC Meeting 2025: Interest Rates Hold Steady at 4.25%-4.5%—What to Expect

Taylor Tompkins is a seasoned journalist with over ten years of experience covering business, finance, and economic trends. As the Economics Editor at Investopedia, she distills complex economic data into clear insights for readers seeking to understand market forces.

Essential Highlights

• The Federal Open Market Committee (FOMC) convened in March 2024, wrapping up with a policy statement on Wednesday.
• No interest rate reductions are anticipated as the Fed maintains a cautious, "wait-and-see" stance.
• Economic projections, including the influential "dot plot," will be released but likely offer limited clarity on future rate moves.
• Investors and analysts will focus on Chair Jerome Powell’s remarks during the post-meeting press conference for guidance.

The March 2024 FOMC meeting began amid economic uncertainty, with inflation control and monetary policy adjustments at the forefront of discussions. The Federal Reserve is set to announce its policy decisions at 2 p.m. Eastern Time on Wednesday, followed by Chair Powell’s detailed briefing at 2:30 p.m.

Interest Rates Expected to Remain Unchanged

The Fed is projected to keep the federal funds rate steady between 4.25% and 4.5%, marking the second consecutive meeting without a rate cut. Market indicators show only a minimal chance of easing monetary policy in the near term.

Officials continue to adopt a cautious approach due to ongoing economic uncertainties, including the impact of evolving trade policies and their effect on business and consumer confidence.

Economic Projections Provide Limited Direction

The FOMC will release its quarterly Summary of Economic Projections, featuring the "dot plot" that illustrates committee members’ forecasts for future interest rates. However, this edition may offer less definitive guidance than usual.

Analysts from Nomura suggest that median rate projections for 2025 through 2027 are expected to remain steady, reflecting the Fed’s patient stance amid volatile market sentiment.

During the press conference, Chair Powell is anticipated to emphasize the Fed’s wait-and-watch strategy, particularly in light of uncertain tariff policies affecting economic outlooks.

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