Policy Rate Updates: Fed policy rates remain steady

The Federal Open Market Committee (FOMC) meeting yesterday, March 20, matched market expectations as the US Federal Reserve maintained the Federal Funds Target Rate (FFR) at 5.25% – 5.50%. This was the fifth consecutive meeting that the FOMC decided to hold policy rates steady, following a string of 11 rate hikes, including four in 2023.

Despite the uptick in US inflation and an increase in the US unemployment rate, Fed Chair Powell recognizes the progress on easing price pressures and continued labor market tightness.