Fed pauses interest rate cuts as inflation, Trump's plans create ...

1 day ago · The Federal Reserve kept its key interest rate unchanged as officials grappled with uncertainty caused by inflation and President Trump's plans.

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What happens if the Fed pauses on interest rates?

If the Fed pauses in its downward path on interest rates, the regulatory pause will have lot to do with inflation. Consumer prices have continued to rise in recent months, albeit at a slower pace than in most of 2022 or 2023. The Fed’s perfect-world inflation target is an annual rate of 2%. The current inflation rate, as of December, is 2.9%. ...

Why did the Fed pause on a rate-cutting campaign?

(Reuters) US Fed Meeting Highlights: The Federal Reserve pressed pause on its rate-cutting campaign, signaling no immediate plans for further reductions as it navigates a landscape clouded by inflation concerns and President Donald Trump’s economic policies. ...

Will the Federal Reserve cut interest rates again?

WASHINGTON – The Federal Reserve paused its interest rate cutting campaign Wednesday and gave no signal it plans to lower rates again in the near term amid uncertainty spawned by inflation and President Donald Trump’s economic policies. ...

Why did the Fed keep interest rates steady?

The Federal Reserve on Wednesday opted to hold interest rates steady amid rising inflation, ending a streak of lowering rates at its previous three meetings. After a two-day meeting of its monetary policy committee in Washington, the Fed announced it would hold its rate target at 4.25% to 4.50%. Investors anticipated the move. ...

Will trump lower inflation by slashing regulation?

Trump, who appointed Powell as Fed chair in 2018, said he would lower inflation himself through various initiatives including energy production, American manufacturing and "slashing regulation." “The Fed has done a terrible job on Bank Regulation,” Trump said in a post on Truth Social. ...

How did Trump's remark affect the Fed?

Trump's remark set up a clash with Powell and the central bank, which is structured as an independent agency insulated from political influence so it can make decisions based on the best interests of the economy. Trump repeatedly badgered Powell to cut rates during his first term, though it didn’t appear to affect Fed moves. ...