Fed Keeps Rates Unchanged, Cites Solid Economic Pace Among Uncertainty

Written by Marshall Benveniste | Mar 20, 2025 9:13:06 PM

The Federal Open Market Committee (FOMC) left interest rates unchanged yesterday at the conclusion of its second of eight regular yearly meetings. The central bank’s key interest rate will stay between the target range of 4.25% to 4.5%.

In a statement following the meeting, the Committee reported:

Economic activity has continued to expand at a solid pace.
Labor market conditions remain solid. The unemployment rate has stabilized at a low level in recent months.
Inflation, though, remains somewhat elevated.

Federal Reserve Chair Jerome Powell said in a news conference following the meeting, “We do not need to be in a hurry to adjust our policy stance, and we are well positioned to wait for greater clarity.”

Powell pointed to the new administration’s policy shifts in trade, immigration, fiscal, and regulatory areas, which have the potential to significantly impact the economy and monetary policy.

The Fed Chair said that “uncertainty around the changes” persists despite recent developments, requiring the FOMC to “separate the signal from the noise” as economic conditions evolve.

It’s not just the Fed that seeks a clearer economic picture. Powell added, “Surveys of households and businesses point to heightened uncertainty about the economic outlook.”

The US central bank seeks to achieve the dual mandate of maximum employment and 2 percent inflation over the long run.

The Fed Chair added that the FOMC is prepared to adjust monetary policy, if needed, based on the economic outlook, risk factors, and economic data. The FOMC cites a wide range of information to inform its decisions, including labor market conditions, inflation pressures and expectations, financial and international developments.

The next scheduled Federal Open Market Committee meeting is May 6-7, 2025.

See more on interest rates from Chief Economist Michael Guckes in Leading Drivers of Future Construction Activity.

Construction economy news and insights you can act on.

Subscribe to our economic reports.

About ConstructConnect

Construction Starts Here™ at ConstructConnect, where our mission is to help the construction industry start every project on a solid foundation. A leading provider of software solutions for the preconstruction industry, ConstructConnect empowers commercial construction firms to streamline their workflows and maximize productivity. ConstructConnect operates as a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the Nasdaq 100, S&P 500, and Fortune 1000.

View full post