US Fed Rate Cut: The US central bank Federal Reserve has not made any change in the key interest rates even in the March meeting. They have been maintained at 4.25-4.5 percent. The Federal Reserve took this decision in the meeting of the Federal Open Market Committee (FOMC). Earlier in the January meeting, the Fed Fund Rates were left unchanged. In the January meeting, Federal Reserve Chairman Jerome Powell had said that until the inflation and employment figures become appropriate, there will be no hurry in cutting the rates.
However, in the March meeting, the FOMC has cut the GDP growth forecast for 2025 and said that inflation is going to rise. The FOMC believes that uncertainty about the economic outlook has increased in the last few weeks. The Fed believes that there is still a possibility of cutting interest rates twice this year. According to Reuters, 9 out of 19 Fed policymakers expect the Fed's benchmark interest rates to fall to a range of 3.75%-4% by the end of this year.
Earlier, rates were reduced 3 times in a row
The US central bank cut interest rates for the third consecutive time in December 2024. This cut was of 25 basis points. Also, it indicated that rates would be cut only twice in 2025. After this, the interest rate came down from 4.5%-4.75% to the target range of 4.25%-4.5%. Earlier, interest rates were cut by 50 basis points in September 2024 and by 25 basis points in November 2024.
