Bank of America: Amid Growing Uncertainty, Fed Expected to Hold Rates Steady

March 19th: It is anticipated that the Federal Reserve will maintain its present policy stance during the March FOMC meeting. Analysts of U.S. bank securities expect that in the face of increasing economic uncertainty, the Federal Reserve will adopt a cautious and prudent policy. The Fed may give priority to "patience over panic" and evaluate the balance between the slowdown in economic growth and the sustained pressure of inflation while keeping interest rates stable. The Fed's latest economic projections will incorporate stagflationary factors, with growth forecasts weakening and inflation expectations being revised upward. Although the market has speculated on the timing of a possible rate cut, policymakers may reaffirm a data-driven approach, emphasizing the need for further clarity on the economic outlook before making any policy adjustments. Investors will closely monitor the remarks of Fed Chair Powell to understand how the Fed views the evolving risks, including supply disruptions, labor market dynamics, and geopolitical uncertainties. (FX678)