The Federal Chair Jerome Powell said he would need to see inflation come down or some weakness in the labor market before making any adjustments|@federalreserve|X
Federal Reserve Chair Jerome Powell announced the bank will keep the interest rates unchanged in the 4.25% to 4.5% range. His reveal came at the end of the two-day Federal Open Market Committee meeting on Wednesday.
The decision follows three consecutive rate cuts in 2024.
The Fed said he would need to see inflation come down or some weakness in the labor market before making any adjustments. The US central bank targets for 2% inflation.
Officials signaled a cautious approach, with fewer rate cuts projected for 2025 amid concerns that President Donald Trump’s economic policies, including tariffs and deportation plans, could fuel price pressures.
Trump took to Truth Social, criticizing Powell and the Fed as failing to stop problems related to inflation. He said he would remedy this by increasing energy production and reducing regulations.