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So far, the Federal Reserve has avoided commenting on the increasingly uncertain outlook, but investors are waiting to see whether it changes its projections on Wednesday.
March 19, 2025, 5:02 a.m. ET
The stock market has fallen fast over the past month. Business and consumer sentiment is souring, and investors are afraid that economic data will soon start to show deeper cracks.
The question on Wednesday: Will the Federal Reserve also express concern about the path ahead?
So far, Fed officials have largely avoided commenting on an uncertain outlook while current economic data remain solid. A healthy labor market has allowed the central bank to continue to point to economic resilience as it holds interest rates high in response to stubborn inflation.
But in addition to announcing its decision on interest rates at its monthly meeting on Wednesday, the Fed will publish its first economic projections since December.
“Since then, the U.S. economic environment has changed dramatically,” said Matt Colyar, an economist at Moody’s Analytics.
Trump administration officials have largely brushed off investors’ concerns, saying that the economy remains on sound footing and that a modest pullback from recent stock market highs is nothing to worry about. The S&P 500 briefly entered a correction last week after four straight weeks of losses. The index is 8.6 percent lower than its record high last month, and down more than 4 percent so far this year.
S&P 500 index performance this year
