Transcript or recording of Jerome Powell's press conference

Fed Set to Hold Rates at 4.50% in First Meeting Since Trump's Return

Jan 29, 2025, 01:22 PM

The Federal Reserve is expected to hold interest rates steady at its first policy meeting of 2025, despite President Donald Trump's calls for immediate rate cuts. Economists anticipate the central bank will maintain the benchmark rate at 4.50%, with market odds of a rate cut standing at 99.5% against. This meeting marks the first since Trump's return to the White House, increasing potential tensions over monetary policy. Fed officials are exercising caution as they assess the impact of the administration's policies, including tariffs and immigration changes, on the economy. Federal Reserve Chair Jerome Powell is scheduled to hold a press conference at 2:30 PM ET, following the rate announcement at 2:00 PM ET, where he will provide guidance on the future path of monetary policy. Investors will closely watch for any indications of whether the Fed considers current interest rates to be near neutral and how it views persistent inflation amid geopolitical uncertainties. The Fed had previously cut rates three times since September 2024, but markets currently price little chance of further cuts until May.