US Fed Policy Announcement (Mar. 2025)

Although the FOMC stuck to its median projection for two interest rate cuts this year, some officials now share our view that further loosening is unlikely and we continue to think that Fed officials are underestimating the extent to which tariffs are likely to push up inflation. Otherwise, the announcement of a further easing in the pace of QT was not well-telegraphed, but is not altogether surprising either given the declining use of the reverse repo facility.