According to CNBC, the Federal Reserve left interest rates unchanged on Mar. 19, keeping its benchmark rate 4.25% to 4.5%.

Despite holding steady, the Fed signaled it still anticipates two rate cuts later this year, citing economic uncertainty and inflation concerns.

Fed Chair Jerome Powell acknowledged that while consumer spending has moderated and tariffs may push prices up, the central bank remains flexible. “If the labor market weakens or inflation falls quickly, we can ease policy,” Powell said.

The Fed also downgraded its economic growth forecast to 1.7% and slightly increased its inflation projection.

In addition, the Fed announced a slowdown in its bond runoff strategy, reducing Treasury roll-offs to $5 billion monthly, while maintaining its mortgage-backed securities cap. This move, seen by some market watchers as a form of indirect easing, comes amid ongoing market volatility tied to tariffs and political uncertainty.

Although markets responded positively following the announcement, with inflation still above the Fed’s 2% target and economic growth cooling, the path of rate policy remains dependent on upcoming data.