Fed Holds Interest Rates But Projects Cuts in 2025
The Federal Reserve maintained its target lending rate at 4.25% to 4.5% for the fourth consecutive meeting of its governing board, led by chairman Jerome Powell, who announced the decision in a press conference Wednesday.
The board remains committed to making two quarter-point cuts or one half-point cut before the end of the year. The Fed, which last reduced rates in December, is tasked with setting monetary policy in pursuit of a dual mandate to maintain the rate of inflation at or near 2% while minimizing unemployment.
Powell acknowledged a strong labor market has tempered fears of an economic recession despite a number of pain points.
“The U.S. economy has defied all kinds of forecasts for it to weaken, really over the last three years, and it’s been remarkable to see … again and again when people think it’s going to weaken out,” he said. “Eventually it will. But we don’t see signs of that now.”
