Fed Minutes to show details of policy easing path amid trade turmoil
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The Minutes of the Fed’s March 18-19 gathering are due on Wednesday. The Federal Reserve delivered a cautious hold at its March event. Investors contemplate a potential rate cut at the May 7 meeting. The eagerly awaited minutes from the United States (US) Federal Reserve’s (Fed) March 18-19 monetary policy meeting are set for release on Wednesday at 18:00 GMT. During the gathering, policymakers agreed to keep the Fed Funds Target Range (FFTR) unchanged at 4.25%-4.50%. The latest Summary of Economic Projections (SEP) update highlighted a palpable sense of uncertainty within the Federal Open Market Committee (FOMC). Indeed, their revised outlook for 2025 and 2026 was notably pared back, signaling caution among policymakers. Yet, despite the more conservative expectations, the Fed’s forecast still anticipated two cuts to the federal funds rate in 2025, underscoring a continued commitment to monetary easing. The Fed delivered a hawkish hold, and Powell confirmed it In a decisive move, the Federal Open Market Committee unanimously voted to hold the policy rate steady this March. Yet, two issues dominated the discussions: a cloud of uncertainty and the looming impact of US tariffs. In his routine press conference, Federal Reserve Chair Jerome Powell characterized the uncertainty as “unusually elevated.” He explained that central bank officials were wrestling with major challenges in updating economic projections amid a flurry of new policy moves from the Trump administration. Powell warned that the Fed could face delays in pushing forward its inflation targets, as inflation had begun to climb—an effect he attributed, at least in part, to the tariffs. Speaking to business journalists in Virginia on April 4, Powell remarked that President Donald Trump’s new tariffs proved to be “larger than expected.” He painted a picture of an economic landscape where rising tariffs could trigger higher inflation and slower growth, potentially…
