The Federal Reserve has decided to keep its benchmark interest rate unchanged at 4.25% to 4.5% after three consecutive rate cuts in 2024. The decision comes despite persistent inflation above the Fed's target of 2%, though inflation has eased to 2.4%. This pause in rate cuts may lead to renewed criticism from President Donald Trump, who has previously called for lower interest rates.
The Federal Reserve has declined to lower its benchmark interest rate. Here’s what to know as its latest meeting concluded Wednesday: The Fed made three consecutive rate cuts in 2024 - reducing the rate by a full percentage point - but inflation is persisting above target. As such, The Federal Reserve left the key rate unchanged after its January meeting.
Last week in Switzerland, Trump said he would bring down energy prices, then "demand" that the Fed lower borrowing costs.RELATED: Federal grant freeze memo rescinded but White House says executive order remains in effectThe Fed is holding the interest rate at 4.25% to 4.5%.Inflation, which soared to a four-decade high in 2022, is back down to 2.4%, according to the Fed’s preferred measure. Its target is 2%.
FEDERAL RESERVE INTEREST RATE INFLATION ECONOMY PRESIDENT TRUMP
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