Federal Reserve officials are widely expected to hold interest rates steady coming out of their March FOMC meeting on Wednesday, which will be followed by a press conference with Fed Chair Jerome Powell.
Yahoo Finance senior Fed reporter Jennifer Schonberger breaks down what investors will be listening for today and their expectations on the central bank's inflation and economic forecasts.
Catch Yahoo Finance's breakdown of the Fed's quarterly Summary of Economic Projections (SEP) report.
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The Federal Reserve widely expected to hold its benchmark interest rates steady in the range of 4 and a quarter to 4 and a half percent this afternoon when it concludes its two-day policy meeting. It's also expected to retain the outlook for two interest rate cuts at some point this year amid the uncertainty of President Trump's policies on the economy. The key theme out of the meeting this afternoon is expected to be uncertainty. Fed chair J. Powell is likely to reiterate that the Fed is not in a hurry to cut interest rates as it awaits clarity on the administration's policies and their impact on the economy. The Fed chair is likely to emphasize that officials' interest rate projections are highly uncertain given upcoming changes with tariffs. Investors are also watching for whether Fed officials now see inflation staying higher this year than previously estimated, and whether economic growth will be revised lower, as officials begin to factor in the impact of Trump's policies. And while many Fed watchers expect the Fed to lower its growth forecast, Chair Powell is unlikely to give any signal that a recession is impending. Though the bond market is signaling that the odds of a recession are rising now as uncertainty clouds business investment and hiring as executives wait to see what tariffs will look like. One of the biggest questions on the table right now is whether how the Fed will navigate the potential for higher inflation and lower growth and whether that amounts to a stagflation scenario. One other thing to watch this afternoon is whether the Fed hints at any pause on its balance sheet drawdown in the face of hitting the debt ceiling soon, and whether that could cause complications for money market funds or the treasury market. All of this decision coming down at 2:00 p.m. Eastern this afternoon, followed by Fed chair press followed by Fed chair Powell's press conference, she tried to say, at 2:30 p.m. Maddie.
You always crush it, Jennifer. Thank you so much for joining us. We really appreciate it.
Thanks.
