The Federal Reserve’s central bank has made its decision on interest rates, maintaining them in a target range of 4.25%-4.5%. The key takeaways from this decision are:
The Federal Open Market Committee voted unanimously, indicating a unified stance among the committee members.
Labor market conditions have not eased, contrary to previous statements. Instead, the unemployment rate has stabilized at a low level, and labor markets remain solid.
Inflation remains elevated, and progress toward the 2% inflation goal is no longer being discussed as “progress”.
The balance of risks between employment and inflation goals is still roughly in place, suggesting that the central bank is cautious about making further changes to interest rates.
Ultimately, the decision will be influenced by incoming data, evolving economic outlooks, and the assessment of risk balances.
Source: https://www.bloomberg.com/news/articles/2025-01-29/key-takeaways-from-fed-decision-to-hold-rates-steady