the staff of the Ridgewood blog
Ridgewood NJ, the Federal Reserve has decided to maintain interest rates at 4.25%-4.5%, following a highly anticipated meeting. The decision comes as the economy faces ongoing trade tensions and financial uncertainty. However, the Fed reaffirmed its plan to cut rates twice this year, potentially lowering them to 3.75%-4.0% in the coming months.
The Federal Reserve eased its quantitative tightening pace, dropping Treasury runoff to $5 billion/month from $25 billion starting April.
Economic Growth and Inflation Projections Adjusted
In its latest outlook, the Fed:
📉 Lowered its 2025 GDP growth projection to 1.7% (down from 2.1% in December).
📈 Raised its estimate of core inflation to 2.8%, signaling persistent price pressures.
Slower Balance Sheet Reduction Expected
The Federal Reserve also hinted at slowing the drawdown of its $6.8 trillion asset portfolio, much of which was accumulated through stimulus efforts over the past decade and a half.
As economic conditions evolve, all eyes remain on the Fed’s next move—will rate cuts arrive sooner than expected? Stay tuned for further updates!
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