On Wednesday, March 18, 2025, the focus of the market was on the FOMC meeting, the latest SEP (Summary of Economic Projections), the Fed’s policy decisions, and Chair Powell’s pressers. As highly expected, the Fed holds all of its key policy rates in March '26 and January '26, after cutting rates cumulatively 75 bps in 2025. Although the Fed largely left the SEP of another 25 bps rate cut in 2026, Chair Powell didn’t rule out a rate hike either. Fed Chair Powell acknowledged that the Fed is indeed discussing a rate hike amid the surge in oil prices as a result of Trump’s Iran war, although Powell/the Fed also pointed out that the surge in oil prices may be transient. Overall, the market earlier expected a 50 bps Fed rate cut in 2026 (June & December), especially under the new Fed Chair (after Powell’s exit). But now Powell made it clear that he will continue as ‘Protem Chair’ till the next Fed Chair is finalized by the US Congress. Powell will also continue as one of ...