#FedHODL

On January 29, 2025, Federal Reserve Chairman Jerome Powell announced that the Federal Open Market Committee (FOMC) had decided to hold the federal funds rate at its current range of 4.25% to 4.50%. This decision followed three consecutive rate cuts at previous meetings. Powell stressed that the Fed was in “no rush” to cut rates further, indicating that any future rate adjustments would depend on significant progress in reducing inflation or a significant weakening in the labor market.

In response to the Fed’s decision, President Donald Trump criticized the central bank and Powell for not lowering rates, blaming the current inflation challenges on the Fed’s policies. He pledged to address the problem through measures such as increasing energy production, deregulation, and balancing trade.

The Fed’s decision to hold rates steady has implications for global markets, including the Indian Rupee, which is likely to remain under pressure due to the Fed’s stance and ongoing portfolio outflows.

Market remains steady!