The Federal Reserve kept interest rates unchanged at 4.25%-4.50% during its March meeting, signaling no rush to adjust monetary policy. However, the central bank’s latest economic projections paint a less optimistic picture, with lower growth forecasts and higher inflation expectations for the coming years.
GDP growth is now expected to slow from 2.1% in 2025 to 1.7%, while inflation is projected to rise to 2.7% in 2025 and 2.3% in 2026. These revisions suggest a more stagflationary environment, contradicting Fed Chair Jerome Powell’s previous dismissal of such risks.
Powell attempted to calm market fears over recession and inflation, reaffirming confidence in the US economy while acknowledging uncertainty. His characterization of President Trump’s proposed tariffs as “transitory” sparked debate among economists.
Boeing emerged as the top performer in the S&P 500, fueled by a multibillion-dollar contract for designing and manufacturing next-generation fighter jets. Tesla, on the other hand, continued its decline, down over 50% from peak and marking its ninth consecutive negative week.
Nvidia CEO Jensen Huang unveiled a new collaboration with General Motors to advance self-driving vehicles, intensifying competition in the robotaxi market.
Source: https://eu.freep.com/story/money/business/2025/03/22/federal-reserve-says-its-in-no-rush-to-adjust-monetary-policy/82594036007