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    Fed Unanimously Holds Rates at 4.25%-4.5% After Three Cuts, Defying Trump's Demands

    Fed Unanimously Holds Rates at 4.25%-4.5% After Three Cuts, Defying Trump's Demands

    131 postsTrump PolicyEconomicsPoliticsBusiness

    The Federal Reserve has unanimously decided to keep interest rates unchanged at its first policy meeting of 2025, maintaining the federal funds rate in the range of 4.25% to 4.5%. This pause comes after three consecutive rate cuts. Despite pressure from President Donald Trump to lower rates immediately, the Fed held steady. In its statement, the Fed removed previous references to inflation making progress toward its 2% goal, noting that inflation remains somewhat elevated. Fed Chair Jerome Powell emphasized that the economy remains strong overall, with the unemployment rate stabilized at a low level and labor market conditions remaining solid and broadly balanced. He stated that the labor market is not a source of inflationary pressures and that the Fed is not in a hurry to adjust its policy stance, adding that they are not on a preset course and will adjust policy as needed to promote their goals.