The Federal Reserve maintains the policy interest rate unchanged, and will start to slow down the pace of balance sheet reduction from April 1st

PANews reported on March 20, according to Wall Street Journal, the Federal Reserve stands pat - maintaining the federal funds rate target range unchanged at 4.25%-4.50%, in line with market expectations. Starting from April 1, it will slow down its balance sheet reduction pace and lower the monthly cap for reducing US Treasury bonds to $5 billion while keeping the scale of monthly reductions of mortgage-backed securities (MBS) unchanged at $35 billion.

The resolution statement said: The uncertainty facing the economy has increased, lowering growth expectations for 2025 and raising inflation expectations. It slightly omits wording about risks roughly balanced against Fed's goals (maintaining price stability + achieving full employment). Federal Reserve Governor Waller supports this FOMC interest rate decision but disagrees with decisions regarding asset-liability sheets.