Fed Keeps Rates at 4.25%-4.50%, Lowers Growth Projections for 2025
The U.S. Federal Reserve maintained its benchmark fed funds rate at 4.25%-4.50%, marking the second consecutive pause after three rate cuts in late 2024.
Key points from the Fed's quarterly economic projections include:
- GDP growth for 2025 revised down to 1.7% from 2.1%
- Core PCE inflation forecast increased to 2.8% for this year, up from 2.5%
- Future core inflation rates projected at 2.2% for 2026 and 2.0% for 2027
- Fed funds rate expected at 3.9% by the end of this year, unchanged from December's outlook
- Projected rates for 2026 and 2027 remain at 3.4% and 3.1%
Following the announcement, Bitcoin's price fell to $83,500 from above $84,000. Risk assets have faced pressure due to concerns over potential tariff impacts on inflation and economic growth.
Fed Chair Jerome Powell will address the public at 2:30 p.m. ET (18:30 UTC), with traders anticipating insights into future monetary policy directions.