Fed leaves interest rates unchanged, says three cuts still planned

The Federal Reserve left interest rates unchanged
at its March meeting, marking the fifth consecutive meeting without a
rate change. Policymakers indicated that plans to cut rates
could be delayed but reiterated their commitment to three rate cuts
this year. Despite high inflation rates, with consumer prices rising
3.2% annually in February, stocks rallied on the news, pushing the
S&P 500 above 5,200 for the first time.
The decision maintains the federal funds rate
between 5.25% to 5.5%, a 22-year high, impacting mortgages, loans, and
credit card rates. Inflation also remains a concern and Treasury
Secretary Janet Yellen expressed regret over previous comments
characterizing inflation as “transitory,” acknowledging that while
prices are easing, the decline may not be smooth.