Jan 30, 2025 12:49 AM IST
The US Federal Reserve also noted that inflation remains “somewhat elevated, and economic outlook is uncertain”.
The US Federal Reserve on Wednesday decided to keep the interest rate cuts unchanged in its first major decision under President Donald Trump’s second term.
The move is expected to create some tension between the central bank the newly inaugurated president, who has contested that he should have some say in the Fed policy.
The Fed Reserve said that the interest rate will remain unchanged in the 4.25-4.50% range, noting that inflation remains “somewhat elevated, and economic outlook is uncertain”.
The announcement comes in the backdrop of China’s DeepSeek having a thronging effect on the US markets, triggering losses for several key corporations in America, including Nvidia.
The Fed statement does not include the language that inflation had made progress toward 2 per cent objective as it had in the December statement, a Reuters report said.
In terms of the unemployment rate, the Federal Reserve said that it has stabilised at a low level, adding that labour market conditions also remain “solid”.
This is a developing story. More information will be updated.
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