
The US Federal Reserve on Wednesday decided to pause interest rate cuts after its previous reduction, maintaining the rates between 4.25% and 4.5%. This cautious stance underscores a wait-and-watch approach as policymakers assess how the economic landscape evolves under President Donald Trump’s ongoing policies.
The central bank acknowledged that inflation remains somewhat elevated, despite a stable unemployment rate in recent months. Federal Reserve Chair Jerome Powell emphasized that any further rate changes would depend on concrete data showing either renewed inflationary pressure or risks to the labor market.
During a press conference, Powell said, “Our policy stance is very well-calibrated”, citing stable unemployment over the past six months and positive recent inflation data. He also highlighted that the Fed is closely monitoring potential policy changes, such as those related to immigration, tariffs, and taxes under the Trump administration, that could influence overall economic activity.
Key Highlights:
- Interest rates maintained: 4.25% to 4.5%
- Inflation: Remains elevated, requiring careful observation
- Unemployment rate: Stable over the past six months
- Powell’s stance: No immediate need for further rate adjustments unless data shows renewed inflation decline or job market risks
The Fed’s decision signals stability but also caution as external factors, including upcoming government policies, may prompt further revisions in the coming months.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Always conduct your research or consult a financial advisor before making decisions related to monetary policy or investments.