Federal Reserve Sees An Increase in Uncertainty Around Unemployment and Inflation, Ends May 2025 Meeting Holding Fed Funds Rate at 4.25%/4.50% "In spite of significant pressure from the President to lower interest rates, the Federal Reserve has held interest rates at a 4.25% to 4.50% target at its May 2025 meeting..
The Fed is stuck because it sees inceased risks on both sides of its mandate. On one side, the unemployment rate could rise as a result of the administration's tariff and tax policies. On the other, Trump's announced tariffs create a significant risk of higher prices on just about everything that consumers and "
Federal Reserve Holds Target at 4.25% to 4.50% at Its March 2025 Meeting "The Federal Reserve's meeting concluded today with the Fed continue to maintain its target rate at 4.25 to 4.50%.
In the Fed's statement, it cites significant progress in getting inflation to its 2% target, but still remains elevated. In fact, the Fed increased its core inflation projection for all of 2025 from 2.50% to 2.80%. The Fed also reduced its growth forecast for 2025 to 1.70%, and sees growth below 1% in 2026.
Importantly, the Fed removed its statements that risks are balanced "