• The rate-setting Federal Open Market Committee (FOMC) kept its key borrowing rate targeted in a range between 4.25%-4.5%, where it has been since December. 
• The FOMC struck the phrase about risk to growth and inflation as roughly “in balance” in Wednesday’s statement.
• The dollar weakened as Fed officials are more downbeat about growth and increased uncertainty.
• Fed staff expect growth to be 1.7% by the end of 2025, down from the December forecast of 2.1%.
• The unemployment forecast rose to 4.4% from 4.3% and core inflation - on an annual basis - is expected to be 2.8%, up from 2.5% estimated in December.
• The FOMC is in the midst of policy fog as they await the impact from upcoming tariffs. The updated projections are more downbeat and will place downside pressure on the dollar in the near term. Despite this month’s inflation data having risks to the upside, we should expect core inflation to decelerate by the summer, in time for the Fed to cut in June.

Source: advisorperspectives.com

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