{"id":2684,"date":"2025-03-20T19:53:30","date_gmt":"2025-03-20T19:53:30","guid":{"rendered":"https:\/\/trusteconomics.eu\/?p=2684"},"modified":"2025-03-20T19:53:30","modified_gmt":"2025-03-20T19:53:30","slug":"fed-ignores-trump-interest-rates-unchanged-at-4-25-to-4-50","status":"publish","type":"post","link":"https:\/\/trusteconomics.eu\/index.php\/2025\/03\/20\/fed-ignores-trump-interest-rates-unchanged-at-4-25-to-4-50\/","title":{"rendered":"FED ignores Trump: Interest rates unchanged at 4.25% to 4.50%"},"content":{"rendered":"The Federal Reserve (Fed) kept its policy interest rates unchanged in the range of 4.25% to 4.50%, ignoring calls from US President Donald Trump for monetary policy easing.\r\n\r\nNotably, the majority of FED officials (9 officials) participating in the FOMC committee predict that the average of the base rate range will be 3.875 at the end of 2025. This means that they consider the most likely scenario to be two more cuts in 2025.\r\n\r\nIt is recalled that last December, FED officials predicted two interest rate cuts in 2025. In addition to the decision on interest rates, the Fed announced a further reduction in the \u201cquantitative tightening\u201d program, through which it gradually reduces the bonds it holds on its balance sheet.\r\n\r\nThe central bank will now allow the release of only $5 billion of maturing US Treasury bonds each month, instead of $25 billion previously. However, it kept the $35 billion limit for mortgage-backed securities (MBS) unchanged, a level that has rarely been reached since the process began.\r\n\r\nIn its statement, the Federal Open Market Committee (FOMC) said that economic activity in the United States continued to expand at a steady pace, with unemployment stabilizing at low levels.\r\n\r\nHowever, the Fed admits that inflation in the US economy remains high. It also, while not mentioning the word \u201ctariffs\u201d, speaks of increased economic uncertainty in the near future, amid trade tensions.\r\n\r\nAt the same time, the Bank will continue to reduce its holdings of US Treasury bonds. Starting in April, however, it will slow the pace of bond reduction, reducing the monthly ceiling for purchasing US Treasury securities from $25 billion to $5 billion.\r\n\r\n\u201cThe Committee seeks to achieve maximum employment and inflation of 2% over the long term. Uncertainty surrounding the economic outlook has increased, and the FOMC is cautious about the risks. The Committee is firmly committed to supporting maximum employment and returning inflation to its 2% objective,\u201d the FOMC stressed.\r\n\r\nThe Bank also released its forecasts for the US economy, expecting “low growth”, with growth below 2% over a three-year horizon. As for annual inflation, it is estimated that it will fall to the 2% target in 2027.\r\nIn detail:\r\n\r\n\"This\r\n\r\n\r\n\r\nPowell (FED): No rush to cut interest rates – Inflation, tariffs in focus<\/strong>\r\n\r\n \r\n\r\nThe head of the US Federal Reserve (Fed), Jerome Powell, remains on the sidelines for the next steps in monetary policy, reiterating that there is no rush on the part of the Fed to cut interest rates.\r\n\r\n \r\n\r\nIn the press conference after the Bank’s meeting and the decision to maintain interest rates in the range of 4.25% to 4.50%, he assessed that the US economy is strong, labor market conditions are stable, however, inflation remains high.\r\n\r\n \r\n\r\nLabor market conditions are generally balanced, they are not a source of inflationary pressures.\r\nPCE prices have now increased 2.8% \u2026 but we are close to price stability.\r\n\r\n \r\n\r\nThe Fed will be monitoring inflation expectations very carefully,\u201d he noted, while referring to a slowdown in consumer spending, one of the driving forces of the US economy.\r\n\r\n \r\n\r\nHe also mentioned the increased uncertainty caused by trade tensions, without mentioning the possible economic impacts.\r\n\r\n \r\n\r\n\u201cWe need clarity,\u201d he clarified about the Bank\u2019s next moves.\r\n\r\n","protected":false},"excerpt":{"rendered":"

The Federal Reserve (Fed) kept its policy interest rates unchanged in the range of 4.25% to 4.50%, ignoring calls from US President Donald Trump for monetary policy easing. Notably, the majority of FED officials (9 officials) participating in the FOMC committee predict that the average of the base rate range will be 3.875 at the … <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[28,44,27,141],"class_list":["post-2684","post","type-post","status-publish","format-standard","hentry","category-economics","tag-fed","tag-inflation","tag-interest-rates","tag-usa"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/trusteconomics.eu\/index.php\/wp-json\/wp\/v2\/posts\/2684","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/trusteconomics.eu\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trusteconomics.eu\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trusteconomics.eu\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/trusteconomics.eu\/index.php\/wp-json\/wp\/v2\/comments?post=2684"}],"version-history":[{"count":1,"href":"https:\/\/trusteconomics.eu\/index.php\/wp-json\/wp\/v2\/posts\/2684\/revisions"}],"predecessor-version":[{"id":2685,"href":"https:\/\/trusteconomics.eu\/index.php\/wp-json\/wp\/v2\/posts\/2684\/revisions\/2685"}],"wp:attachment":[{"href":"https:\/\/trusteconomics.eu\/index.php\/wp-json\/wp\/v2\/media?parent=2684"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trusteconomics.eu\/index.php\/wp-json\/wp\/v2\/categories?post=2684"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trusteconomics.eu\/index.php\/wp-json\/wp\/v2\/tags?post=2684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}