Federal Reserve holds interest rates steady as inflation remains above 2%
CBSN
The Federal Reserve said Wednesday that it will leave its benchmark rate unchanged, hitting the brakes on lowering borrowing costs for individuals and businesses after a flurry of rate cuts starting last fall.
The Fed said it will maintain the federal funds rate at its current range of 4.25% to 4.5%. The decision comes after the central bank trimmed rates three times starting in September 2024, which has pushed down the federal funds rate — the rate banks charge each other for short-term loans — by one percentage point.
The pause, the Fed's first rate decision since President Trump returned to office on Jan. 20, comes as economists predict the central bank is likely to take a wait-and-see approach to the president's economic policies, given that some, such as higher tariffs, could prove inflationary.
