Fed Will Hold Rates Steady at March Meeting

Projection

The Federal Reserve will maintain the federal funds rate at current levels during its March 2025 FOMC meeting.

Rationale

Despite market expectations for cuts, recent inflation data and strong employment numbers will keep the Fed cautious. Chair Powell has emphasized data dependency, and February's CPI print came in hotter than expected at 2.8%. The committee will want to see more evidence of sustained disinflation before acting.

Evidence