Overview

• The Federal Reserve kept its benchmark interest rate unchanged at 4.25–4.5% during its first meeting since Donald Trump's return to the presidency.
• Fed Chair Jerome Powell cited persistent inflation, which rose to 2.9% in December, and a strong labor market as reasons to maintain the current rate policy.
• Trump has publicly criticized the Fed's decision, demanding immediate rate cuts and claiming to understand monetary policy better than Powell.
• The European Central Bank is widely expected to announce a 0.25% rate cut on Thursday, reducing its deposit rate to 2.75% to stimulate the Eurozone's weak economy.
• Rising inflation in both the U.S. and Eurozone, along with geopolitical uncertainties like Trump's tariff threats, complicates monetary policy decisions for both central banks.