Federal Reserve to Maintain 4.25%-4.5% Rate Range in First 2025 Meeting Despite Trump's Demands

Jan 29, 2025, 03:03 PM

The Federal Reserve is poised to maintain its current interest rate range of 4.25% to 4.5% at the conclusion of its first policy meeting of 2025, despite President Donald Trump's public calls for immediate rate cuts. The central bank's decision comes after three consecutive rate reductions at the end of 2024, and amid expectations that it will pause to assess the economic impact of Trump's policies on trade, immigration, and spending. Analysts and market indicators suggest a high likelihood of the Fed holding rates steady, with investors closely watching Federal Reserve Chair Jerome Powell's press conference for any hints on future monetary policy directions. Trump's recent comments at the World Economic Forum in Davos, where he criticized the Fed's rate decisions and expressed his desire for lower rates globally, have added pressure on the central bank. However, the Fed's independence and its focus on managing inflation, which remains above the target of 2%, are expected to guide its decision-making process.