The Fed tonight

The Federal Reserve or The Fed maintained its benchmark interest rate at 4.25%-4.50% in the Federal Open Market Committee or FOMC for the January 2025 period. The FOMC voted unanimously to maintain The Fed's interest rate after the United States (US) central bank lowered interest rates by one percentage point at the end of 2024. Fed Governor Jerome Powell explained that inflation remains quite high, but has reached its 2% target. The Fed also noted that the unemployment rate has stabilized at a low level. "With our policy stance much looser than before, and the economy remaining strong, we need not rush to adjust our policy stance," Powell said on Wednesday (1/29/2025) US time or Thursday (1/30/2025) early morning.

As reported by Bloomberg, strong economic growth coupled with a solid labor market allows the Fed to wait for further evidence of declining inflation before adjusting interest rates again. It also gives them time to evaluate how President Donald Trump's policies on immigration, tariffs, and taxes could affect the US economy.