FED pauses interest rate cuts amidst Inflation Concerns..!?

The US central bank, the Federal Reserve, announced at the end of its monetary policy meeting on wednesday that it will stop cutting interest rates. With this announcement, the Federal Reserve has informed investors and the public that a cautious approach will be adopted in monetary policy in the coming months. In the Federal Reserve's announcement released on wednesday, this decision has been taken after a series of interest rate cuts have been implemented throughout 2024. The Federal Reserve has said that interest rates will remain within the range of 4.25% to 4.5%. The Federal Reserve has an important reason for making this decision, considering that the unemployment rate in the united states is low and stable, and inflation is only slightly above its target of 2%.
Inflation in the united states increased to 2.9% in december, which is higher than expectations. The Consumer Price Index (CPI) growth has been increasing for the third consecutive month. The Federal Reserve has said that it will closely monitor key factors and overcome obstacles before making any further changes to interest rates. In late 2024, the Federal Reserve cut interest rates by 25 basis points at its december meeting, which was about 100 basis points, or 1 percent, last year alone. In this situation, the Federal Reserve has stopped this interest rate cut, both because the Federal Reserve has adopted a more cautious approach to monetary policy and to alleviate the effects of the regime change.
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Sowmiya Sriram

30/01/2025 11:36 AM