Federal Reserve Leaves Interest Rates Unchanged, Signals 3 Cuts This Year

The Federal Reserve kept interest rates unchanged at the March Federal Open Market Committee (FOMC) policy meeting on March 20, but officials signaled that three rate cuts were still planned for this year. Monetary authorities kept the benchmark Fed funds rate at a range of 5.25 percent and 5.5 percent, the highest level in 23 years. According to the FOMC statement, economic activity remains expanding at a solid pace, the U.S. labor market remains strong, and the unemployment rate continues to be low. Although inflation is still elevated, it has eased over the past year, the Fed said in its post-meeting statement. Officials maintained the same language from the January meeting that it is inappropriate to lower interest rates until the Fed “has gained greater confidence that inflation is moving sustainably toward 2 percent.”...