The Federal Reserve is expected to keep interest rates steady at its policy committee meeting ending March 19, but signal via Fed officials’ quarterly summary of economic projections that two rate cuts are likely later this year.
Although sentiment surveys and spending data indicate that Americans are feeling less confident about the future, recent data on the labor market and economic growth indicate conditions are stable. That gives the Fed flexibility to maintain a wait-and-see approach to any change in rates.
In a statement after the meeting, Fed Chair Jerome Powell is likely to continue urging patience with regard to rate cuts, given the economic uncertainty sparked by the Trump administration’s federal job cuts and tariffs. Interest-rate futures market pricing on Tuesday implied only a 1% likelihood of a change in the target rate on Wednesday. It is currently set at a range of 4.25% to 4.5%.