Fed Holds Rates, Slows Balance Sheet Runoff
The FOMC decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. 12
Beginning in April, the monthly redemption cap on Treasury securities will be reduced from $25 billion to $5 billion. The cap on agency debt and agency mortgage-backed securities stays at $35 billion. 1
The statement says economic activity has continued to expand at a solid pace and labor market conditions remain solid. It says inflation remains somewhat elevated and uncertainty around the outlook has increased. 1
Chair Powell said GDP rose 2.3 percent in the fourth quarter of last year, while recent indications point to a moderation in consumer spending. 1
The March projections show real GDP growth of 1.7 percent in 2025, an unemployment rate of 4.4 percent, and PCE inflation of 2.7 percent. 1
The minutes record participants' continued discussion of the monetary policy framework review, focused on labor market dynamics and the maximum employment goal. 1