Federal Reserve maintains interest rates following 3 consecutive cuts
Updated 1/30/2025 8:21:00 AM
Arab Finance: The Federal Reserve has kept its interest rate at a range of 4.25% to 4.5%, according to the Federal Open Market Committee (FOMC) statement on January 29th.
The unchanged interest rate followed three straight meetings that ended in cuts.
The committee pointed out that it will continue lowering its holdings of treasury securities, agency debt, and agency mortgage-backed securities.
This supports the committee’s goals to back maximum employment and return inflation to its 2% objective.
On his part, Federal Reserve Chair Jerome Powell said the central bank will need to see “real progress on inflation or some weakness in the labor market before we consider making adjustments.”
In December 2024, the Federal Reserve cut its target range for the federal funds rate by 0.25% to between 4.25% and 4.50%.
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