Cautious Fed holds rates steady with Trump unknowns looming over outlook
Published On Jan 29, 2025, 3:12 PM
The Federal Reserve has decided to hold interest rates steady following a series of cuts, amid uncertainty regarding the economic policies of President Trump. Fed Chair Jerome Powell emphasized caution, noting that potential changes in tariffs and fiscal policies under the new administration could influence inflation and monetary policy. Powell stated the Fed will need to assess these factors before making further adjustments.
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The cautious stance of the Fed and potential impacts from new tariffs suggest a mixed outlook for inflation and economic growth. Investors should monitor how these policies unfold as they could lead to changes in market sentiment and asset values.
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