Fed Leaves Interest Rates Unchanged, Hints at Future Cuts
Citing low unemployment and “solid” market conditions, the Federal Reserve Board held firm to its 4.25% to 4.5% target lending rate, extending a pause that began in January following a series of quarter-point cuts in the second half of 2024.
However, in a release announcing the hold, Fed officials noted that inflation remains “somewhat elevated,” a trend that appears likely to continue. Officials and market watchers have suggested the Fed could reduce target rates twice in 2025.
“The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals,” the release states, in part. “The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.”
