The Fed maintained interest rate at 4.25%-4.50% during the Federal Open Market Committee (FOMC) meeting on March 19, 2025. Fed members anticipate a slowdown in US economic growth while inflation remains high. This policy decision was made due to continued uncertainty surrounding US import tariff policies. This uncertainty underlies the Fed’s cautious approach to adjusting fund rates, especially with inflation still above target. The latest Personal Consumption Expenditures (PCE) price index shows general inflation declined to 2.50% YoY in February 2025, while consensus forecasts expect inflation to stabilize at 2.40% YoY by the end of 2025.