In its meeting on January 29, 2025, the Federal Reserve of the United States decided to keep interest rates unchanged in the range of 4.25% to 4.5%, despite pressures from President Donald Trump to lower them. This decision marks a pause in the rate cuts that had been made since September 2024. thetimes.co.uk
Fed Chairman Jerome Powell pointed out that there is no urgent need to adjust monetary policy at this time, emphasizing the risks of lowering interest rates too aggressively. Powell highlighted that the economy and the labor market remain strong, and that inflation has decreased significantly, dropping from nearly 10% in 2022 to just above the Fed's 2% target. thetimes.co.uk
This stance of the Federal Reserve underscores its independence from political pressures, as President Trump has repeatedly criticized the Fed for not lowering interest rates and has advocated for measures to control inflation and stimulate economic growth. wsj.com
Financial market analysts have divided opinions on the future of monetary policy. Some anticipate the need for more rate cuts due to signs of economic slowdown, while others, based on the current strong growth, predict fewer changes. The Fed's decision to keep rates stable reflects a cautious approach, carefully evaluating economic data before making further adjustments. cincodias.elpais.com
In contrast, the European Central Bank has cut interest rates for the fourth consecutive time, bringing them to 2.75%, with the goal of achieving 2% inflation in 2025. This divergence in monetary policies could weaken the euro against the dollar and have inflationary effects in Europe. elpais.com