Federal Reserve Holds Rates Steady as Inflation Slows

The Fed maintained its key interest rate at 4.25%-4.50%, signaling caution as inflation moderates and economic growth remains steady.

The Federal Reserve decided to keep interest rates unchanged during its January meeting, continuing its pause since September 2024.
Chair Jerome Powell emphasized the need for more progress on inflation or labor market changes before considering rate adjustments.
Inflation showed a slight uptick to 2.9% in December 2024, but experts suggest this is part of normal fluctuations rather than a sign of accelerating inflation.
The U.S. economy grew at a 2.3% annual rate in Q4 2024, supported by strong consumer spending and low unemployment, despite high interest rates and global uncertainties.
Consumers are advised to lock in higher yields on savings products like CDs, as rate changes could impact returns on savings and loans in the future.