Fed Leaves Rates Unchanged, In Line With Analyst Consensus

On March 19, 2025, the Fed released FOMC Statement. The central bank decided to maintain the target range for the federal funds rate at 4.25% – 4.50%.

Fed noted that unemployment rate stabilized at low levels in recent months, while inflation remained somewhat elevated. Interestingly, Fed decided to slow the pace of asset sales starting from April.

Fed also released economic projections, which usually have a material impact on market dynamics.

GDP growth projection was changed from 2.1% to 1.7% in 2025. Projections for 2026 and 2027 were revised to 1.8% and 1.8% accordingly.

The unemployment rate projection for this year was raised from 4.3% to 4.4%, while PCE inflation projection was increased from 2.5% to 2.7%.

Despite higher inflation projection, Fed left the federal funds rate projection for 2025 at 3.9%. Federal funds rate projections for 2026 and 2027 were also left intact at 3.4% and 3.1%.

U.S. Dollar Index pulled back from session highs as traders reacted to Fed decision and economic projections. Currently, U.S. Dollar Index is trying to settle below the 103.65 level.

Gold climbed towards the $3035 level as traders focused on the dynamics of the U.S. dollar.

SP500 remained stuck near the 5650 level. It looks that stock traders may wait for Powell’s press conference before they will be ready to make big moves.

For a look at all of today’s economic events, check out our economic calendar.