#Fed's March Rate Decision#   Fed announces interest rate decision, Powell points to Trump's tariffs for inflation.

The US Federal Reserve (Fed) presented an updated projection at its meeting today, leaving interest rates steady and predicting two interest rate cuts for 2025. The Fed's interest rate projection table, known as the "dot plot," remained at the same level as expectations announced in December.
Trump's Tariffs and Economic Uncertainty
The Fed's decision to keep interest rates steady shows that it is waiting for the effects of President Donald Trump's tariffs on the economy to become clear. It is known that Trump's trade policies have caused fluctuations in stock and crypto markets. The Fed emphasized in its statement that economic uncertainty has increased, and said, "The Committee will closely monitor developments regarding the economic outlook."
Interest rates remain stable at 4.25% to 4.50%, while updated estimates call for two rate cuts in 2025. Fed officials, who previously expected four rate cuts, have now predicted a more limited easing. While a Fed official said there could be five rate cuts in 2025 last December, no official expects more than three rate cuts, according to the latest projection.
Reaction in Bitcoin and Cryptocurrency Markets
Following the Fed's interest rate decision, the price of Bitcoin fell after a short-term increase. Bitcoin BTC, which rose before the decision, increased by 3.2% in the last 24 hours to $84,000. Ethereum rose by 7.7% to $2,000, while Solana gained 5% to $129.50.
The volatility in cryptocurrency markets is also closely related to inflation data. The Consumer Price Index (CPI), released last week, showed that inflation increased by 2.8% on an annual basis. This rate continues to remain above the Fed’s 2% target. The Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation indicator, is expected to be announced at 2.7% this month.
The main headlines in FED Chairman Powell's statements are as follows (March 19, 2025):
The economic outlook is strong, but inflation is still "slightly high".
There has been upward pressure on inflation expectations due to tariffs.
The FED will not rush to cut interest rates and will wait for more economic data to make a decision.
If there is a weakening in the labor market, the FED may ease monetary policy if necessary.
If economic growth remains strong, tight monetary policy may continue.
The balance sheet reduction process will be slowed down, but stopping it completely is not on the agenda at the moment.
No clear time frame has been set for interest rate cuts, decisions will depend on data.
The banking sector is in solid shape, but some small-scale banks may feel pressure.
Although it is stated that inflation is on a downward trend, more clear data is needed to reach the target level of 2%.