Stubbornly high inflation and heightened uncertainty sideline US Fed

The Fed is in full wait-and-see mode and in no hurry to cut rates, something that financial markets have not fully absorbed, writes KPMG US Chief Economist Diane Swonk.

The United States (US) Federal Open Market Committee (FOMC) – the policy setting arm of the Federal Reserve – voted unanimously to hold the fed funds rate in the 4.25 percent - 4.5 percent range in March. The biggest change in the statement following the meeting was a new clause: "Uncertainty around the economic outlook has increased." The statement removed the line saying risks to inflation and employment goals were balanced. Fed Chairman Jay Powell said that the elimination ...

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Authors: Diane Swonk

Published Date: 20 March 2025