Fed holds interest rates steady, still sees additional cuts coming
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The Federal Reserve kept interest rates steady in its latest meeting, maintaining the benchmark rate between 4.25%-4.5%. Despite economic uncertainties from tariffs and slowing growth, the Fed still projects two potential rate cuts this year. The central bank lowered its economic growth forecast to 1.7% and raised inflation expectations to 2.8%, reflecting a cautious economic outlook.
March 19, 2025 | 6:15 pm
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POSITIVE IMPACT
The Fed's decision and potential future rate cuts could provide support for the broader market, with the Dow rising over 400 points following the announcement.
The Fed's indication of potential rate cuts and market-supportive language suggests a positive short-term outlook for broad market ETFs like SPY.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90