As expected, the Fed decided to keep interest rates unchanged.
Now all eyes will be on Federal Reserve Chairman Jerome Powell’s press conference, scheduled for 9:30 PM (UTC+3, 2:30 PM ET).
The meeting took place amid weak February employment data and sharp fluctuations in oil markets due to escalating tensions between the US and Iran.
Market expectations were largely focused on the Fed keeping its policy interest rate unchanged. However, more than the decision itself, the economic projections and forward-looking guidance that the Fed will release will be decisive for investors.
The Federal Reserve’s interest rate decisions have a wide-ranging impact over time, from mortgage rates and credit card borrowing costs to auto loans and deposit returns. While the effect of a single rate decision may be limited, the long-term cycle of rate cuts or increases can have significant consequences for both consumers and businesses. Higher interest rates can help control inflation, but they can also lead companies to slow down hiring or resort to layoffs.
The forecasts published in December predicted only one interest rate cut for 2026. While these projections are not binding, they offer important clues about the medium-to-long-term outlook for the US economy.
On the other hand, uncertainties regarding economic policies in the US continue. In February, the Supreme Court’s decision to overturn several tariffs imposed by former President Donald Trump raised questions among businesses and consumers about refund processes. The Trump administration subsequently implemented a wide range of new tariffs.
Federal Reserve Chairman Jerome Powell has previously stated that tariffs are already having an impact on the economy, while also indicating that potential increases in inflation could stem from various factors. Inflation data has recently remained slightly above the Fed’s 2% target.
*This is not investment advice.