Federal Reserve holds interest rates steady as inflation remains above 2%

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Fed holds rates steady, takes less confident view on inflation

Published Wed, Jan 29 20252:00 PM ESTUpdated 3 Min Ago

Jeff Cox
@jeff.cox.7528
@JeffCoxCNBCcom


The Federal Reserve held its key interest rate in check Wednesday, reversing a recent trend of easing policy as it examines what is likely to be a bumpy political and economic landscape ahead.

In a widely anticipated move, the central bank’s Federal Open Market Committee left unchanged its overnight borrowing rate in a range between 4.25%-4.5%.

The decision followed three straight cuts since September 2024 worth a full percentage point and marked the first Fed meeting since frequent Fed critic Donald Trump assumed the presidency last week and almost immediately made known his intentions that he wants the central bank to cut rates.

The post-meeting statement dropped a few clues about the reasoning behind the decision to hold rates steady. It offered a somewhat more optimistic view on the labor market while dropping a key reference from the December statement that inflation “has made progress toward” the Fed’s 2% inflation goal.

https://www.cnbc.com/2025/01/29/fed-rate-decision-january-2025.html

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