Key Takeaways From Fed Decision to Hold Rates Steady

Here are key takeaways from the Federal Reserve's interest-rate decision on Wednesday:

• Federal Open Market Committee votes to maintain benchmark rate in target range of 4.25%- 4.5%
  
• “Dot plot” of rate projections shows the median official expected to lower rates by a half percentage point in 2025, implying just two quarter-point cuts this year, the same as they expected in December
  
• Statement adds language noting that “uncertainty around the economic outlook has increased” and removes language saying risks to achieving employment and inflation goals “are roughly in balance”
  
• Fed says it will slow the pace of runoff of its securities holdings beginning in April by reducing the monthly cap on Treasury securities redemption from $25 billion to $5 billion; will maintain the monthly redemption cap on agency debt and agency mortgage-backed securities at $35 billion
  
• Governor Christopher Waller votes against decision in favor maintaining the pace of balance- sheet runoff, the third such dissent since the Fed began lowering rates in September; Fed says Waller supported decision to hold rates steady
  
• Median Fed official marks up underlying inflation estimate to 2.8% at the end of 2025, up from 2.5% forecast in December, and sharply lowers growth estimate to 1.7% by end of 2025, down from 2.1% previously
  

For Bloomberg's TOPLive blog on the Fed decision and press conference, click here