News & Media
WASHINGTON — After cutting interest rates for three straight meetings, the Federal Reserve on Wednesday announced its widely expected decision to leave interest rates unchanged following its first monetary policy meeting of 2025.
The Fed said it decided to maintain the target range for the federal funds rate at 4.25% to 4.50% in support of its dual goals of maximum employment and inflation at the rate of 2% over the longer run.
The decision to leave rates unchanged came as the Fed noted inflation remains “somewhat elevated” and reiterated its strong commitment to returning inflation to its 2% objective.
The U.S. central bank also reiterated that it is attentive to the risks to both sides of its dual mandate, which it described as “roughly in balance.”
With regard to the outlook for rates, the Fed once again said it will carefully assess incoming data, the evolving outlook, and the balance of risks when considering the extent and timing of additional adjustments to the target range for the federal funds rate.
The Fed’s latest decision comes after it lowered rates by a total of 100 basis points or 1.0 percentage point over the three previous meetings, beginning with a 50 basis point cut in September.
The central bank’s next monetary policy meeting is scheduled for March 18-19, when Fed officials will also provide their latest projections for rates, inflation and the economy.
CME Group’s FedWatch Tool is currently indicating a 71.6% chance the Fed will once again leave rates unchanged but a 28.2% chance of a quarter-point rate cut.
©2025 dpa GmbH. Distributed by Tribune Content Agency, LLC.
Author fschmuff
