US Federal Reserve: The Federal Reserve has also expressed apprehension of rising inflation due to the growing uncertainty over the tariff plan. It has raised its inflation forecast from 2.5 percent to 2.8 percent.
US Fed Rate Cut: The US Central Bank Federal Reserve has once again decided not to cut interest rates. In the meeting of the Federal Open Market Committee, the Federal Reserve has maintained interest rates at the current level of 4.25 – 4.50 percent. For the second consecutive time in 2025, the US Central Bank has decided not to make any change in interest rates. Interest rates were not changed in the month of January as well.
The Federal Reserve may not have cut interest rates in the month of March. But in 2025, the Fed has indicated to cut interest rates twice. There is a possibility of a 50 basis point cut in interest rates in 2025. The Federal Reserve has expressed concern over the increasing uncertainty in the US economy due to US President Donald Trump’s tariff plan and has also expressed apprehension of rising inflation. The US has increased its inflation forecast from 2.5 percent to 2.8 percent. The US economic growth rate (US GDP) forecast has been reduced from 2.1 percent to 1.7 percent.
US Federal Reserve Chairman Jerome Powell considered it a challenge to assess the impact of tariffs on inflation. He said that the current survey shows that there is a risk of inflation rising due to Trump’s tariff plan and inflation is also rising, the reasons for which include trade policy.
Due to the Federal Reserve cutting interest rates twice in 2025, there was a great boom in the US stock market and the market closed with a huge surge. This has also affected the Asian markets and due to this there are signs of the Indian market also opening with a boom.
Tax Important News: Last chance for all taxpayers to save tax, this work has to be done by March 31