Fed Holds Rates Amid Economic Uncertainty

The U.S. Federal Reserve maintains its interest rates, with Chair Jerome Powell stating no immediate rate cuts are planned due to inflation and employment data. Economic policies from Trump's administration could influence future Fed actions. Inflation remains a primary concern, and economic activity continues at a stable pace.

The U.S. Federal Reserve has decided to keep interest rates steady, as announced after a two-day policy meeting. Fed Chair Jerome Powell emphasized there would be no rush to cut rates unless future data on inflation and employment signal a need for change. This decision places Fed policy in a holding pattern amid a stable, yet uncertain, economic backdrop.

Recent macroeconomic conditions have remained relatively stable, although potential policy shifts from President Trump's new administration could introduce uncertainties. Powell highlighted the importance of monitoring these developments before making any adjustments to the interest rates.

The Federal Open Market Committee noted that inflation remains above target, but not at alarming pandemic levels. The Fed aims to resume progress in lowering inflation, with investors predicting no rate cuts until at least June. While the central bank is cautious of cutting rates too swiftly, financial markets responded with slight downturns in stocks and steady bond yields.

(With inputs from agencies.)