Tesla Notches Ninth Negative Week; Fed Sees More Inflation, Less Growth Yet Powell Labels Tariffs Effect As 'Transitory': This Week In Markets

Wall Street remains on edge as investors adopt a cautious stance amid an increasingly uncertain economic outlook. At its March meeting, the Federal Reserve kept interest rates unchanged at 4.25%-4.50%, signaling "no rush" to adjust its monetary policy.

Yet, the central bank's latest economic projections painted a less optimistic picture, with lower growth forecasts and higher inflation expectations for the coming years.

The Fed now expects real GDP growth to slow from its December forecast of 2.1% for 2025 to 1.7%. Growth estimates for 2026 were revised downward from 2% to 1.8% and 2027 was lowered from 1.9% to 1.8%.

The Personal Consumption Expenditures price index, the Fed's preferred inflation gauge, is now projected to hit 2.7% in 2025, up from 2.5% previously. ...