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US Fed keeps interest rates unchanged at 4.25-4.5 pct

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      US Fed keeps interest rates unchanged at 4.25-4.5 pct

      2025-01-30 09:52 Last Updated At:15:17

      The U.S. Federal Reserve on Wednesday left the target range for the federal funds rate unchanged at 4.25 percent to 4.5 percent, marking the first time the Fed has held rates steady since it began a series of rate cuts in September 2024.

      "The Committee judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate," the Federal Open Market Committee (FOMC), the central bank's policy-setting body, said in a statement after a two-day meeting.

      "In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4.25 to 4.5 percent," the statement said.

      At a press conference Wednesday afternoon, Fed Chair Jerome Powell noted that inflation "has eased significantly" over the past two years, but "remains somewhat elevated" relative to the central bank's 2-percent longer-run goal.

      The Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation gauge, rose 2.1 percent in September from a year ago, then increased 2.3 percent in October and 2.4 percent in November, indicating continued inflationary pressures.

      Powell said that estimates based on the Consumer Price Index (CPI) and other data indicate that total PCE prices rose 2.6 percent over the 12 months ending in December. Excluding the volatile food and energy categories, core PCE prices rose 2.8 percent from a year earlier, consistent with the previous two months.

      "If the economy remains strong and inflation does not continue to move sustainably toward 2 percent, we can maintain policy restraint for longer. If the labor market were to weaken unexpectedly or inflation were to fall more quickly than anticipated, we can ease policy accordingly," said Powell.

      According to data released by the U.S. Department of Labor on Jan. 15, the CPI rose by 0.4 percent in December 2024, compared to the previous month, the largest monthly increase since March 2024. Excluding volatile food and energy prices, the core CPI grew 3.2 percent year on year, which was above the long-term target of 2 percent.

      US Fed keeps interest rates unchanged at 4.25-4.5 pct

      US Fed keeps interest rates unchanged at 4.25-4.5 pct

      US Fed keeps interest rates unchanged at 4.25-4.5 pct

      US Fed keeps interest rates unchanged at 4.25-4.5 pct

      Next Article

      Palestinian death toll in Gaza rises to 48,297

      2025-02-20 01:55 Last Updated At:03:17

      The Palestinian death toll from Israeli attacks in Gaza since October 2023 has risen to 48,297, with injuries up to 111,733, according to a statement released by Gaza-based health authorities on Wednesday.

      In the past 24 hours, Israeli military operations in the Gaza Strip resulted in three deaths and 11 injuries, while another person died from serious injuries caused by previous Israeli attacks, the statement said.

      A senior official of the Islamic Resistance Movement (Hamas) said on Wednesday that it had submitted a proposal to Israel through mediators for a comprehensive prisoner-for-hostage swap based on the principle of "all for all" as part of ongoing negotiations.

      The official did not specify whether the proposal was considered part of the first phase of the agreement or linked to the upcoming second phase of negotiations.

      In a press statement on Tuesday, Hamas spokesman Hazem Qassem affirmed the movement's readiness for "a one-time prisoner swap in the second phase."

      However, he stressed that such a deal must be "part of an agreement leading to a permanent ceasefire and a full Israeli withdrawal from the Gaza Strip."

      Palestinian death toll in Gaza rises to 48,297

      Palestinian death toll in Gaza rises to 48,297

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