#FedHOLD Fed Maintains Interest Rates Amid Inflation Concerns
On January 30, 2025, the Federal Reserve opted to keep interest rates steady, maintaining the range of 4.25% to 4.50% instead of reducing them. This decision was influenced by persistent inflation, which rose to 2.9% in December 2024 from 2.4% in September 2024.
Why the Fed Chose to Hold Rates
The Federal Reserve aims to stabilize the economy by managing inflation. When inflation is high, increasing interest rates can help slow borrowing and spending. Conversely, lower rates stimulate borrowing and investment when inflation is too low. Since inflation remains above the desired level, the Fed decided to delay any rate cuts for now.
