Particle.news

Download on the App Store

Federal Reserve Holds Interest Rates Steady, Signaling Caution on Future Cuts

The Fed paused rate cuts amid persistent inflation and a strong labor market, while monitoring the potential effects of new Trump administration policies.

  • The Federal Reserve maintained the federal funds rate at 4.25% to 4.50% following three rate cuts in late 2024, citing a solid labor market and elevated inflation.
  • Fed Chair Jerome Powell emphasized a cautious approach, stating future rate decisions will depend on incoming data, particularly on inflation and employment trends.
  • The Fed removed prior language suggesting progress toward its 2% inflation target, reflecting concern over inflation's persistence above the goal.
  • President Trump's renewed economic policies, including potential tariffs and deportations, are creating additional uncertainty around inflation and growth impacts.
  • Market analysts predict limited rate cuts in 2025, with the earliest potential adjustments anticipated in mid-year, contingent on economic conditions.
Hero image