FOMC holds rates amid uncertainty and stagflation risks
Fed chair Jay Powell says inertia also a factor as committee opts for caution
The US Federal Open Market Committee (FOMC) voted unanimously today (March 19) to hold the target for the federal funds rate at 4.25–4.5%.
The median expected federal funds rates for 2025, 2026, 2027 and the long run were all unchanged from December at 3.9%, 3.4%, 3.1% and 3% respectively.
The chair of the Federal Reserve, Jerome Powell, said there had been little change in the projected path of policy because weaker growth and higher inflation were offsetting each other somewhat.
He added that
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