Fed Holds Rates Steady, Pausing For Further Inflation Progress

Federal Reserve officials held interest rates steady, pausing to assess the inflation outlook following a string of rate reductions last year.

The Federal Open Market Committee voted unanimously on Wednesday to keep the federal funds rate in a range of 4.25%-4.5%, after lowering rates by a full percentage point in the final months of 2024.

In a post-meeting statement, officials repeated that inflation remains “somewhat elevated” but removed a reference to it having made progress toward their 2% goal. They also noted the unemployment rate has stabilized at a low level.