COINOTAG News, March 19th. In a recent survey conducted by Bloomberg, all 108 economists concluded that the Federal Reserve’s FOMC is likely to hold its monetary policy steady, maintaining the upper limit of the target range at 4.5%. This marks the Fed’s second consecutive policy maintenance, following three significant rate cuts totaling 100 basis points under the leadership of Fed Chair Jerome Powell at the close of last year. The current economic landscape presents many uncertainties, particularly concerning future growth and inflation trends.
Regarding inflation, rising consumer prices have been amplified by increases in tariffs, illustrating that the Federal Reserve is still grappling with its aim to stabilize inflation at the 2% target. The most recent data indicates that the core personal consumption expenditures index (excluding food and energy) is at 2.6%, slightly above the Fed’s previous year-end forecast of 2.5%. Looking ahead, the Fed’s trajectory for future policy rates raises questions on variability in forecasts, especially considering divergent comments from economists like Diane Swonk, Chief Economist at Grant Thornton, who noted that the rate-cutting path may vary significantly amid ongoing economic uncertainties.