Fed Maintains Interest Rates Following Three Consecutive Cuts

The Federal Open Market Committee (FOMC) has decided to keep interest rates steady. Key points include:

The unemployment rate is stable, and the labor market is solid.
Inflation remains somewhat elevated.
The FOMC believes risks to employment and inflation goals are balanced.
Current interest rates are in the range of 4.25%-4.5%, with expectations to end 2025 between 3.75%-4%.
President Trump's policy plans may affect inflation and the labor market, challenging the central bank's objectives.
Markets anticipate the FOMC will maintain this pause through March, with a 28% chance of a pause according to CME Group data.
Post-decision, the S&P 500 and Nasdaq Composite were down by 0.7% and 1%, respectively.