The Federal Reserve has decided to hold interest rates steady after making three cuts at the end of last year. Officials noted that the unemployment rate has stabilized and the labor market remains solid, while inflation is still somewhat elevated. The Federal Open Market Committee (FOMC) indicated that risks to its employment and inflation goals are roughly balanced, and they are paying attention to uncertainties in the economic outlook. Currently, the target range for interest rates is between 4.25% and 4.5%, with expectations that the range could end 2025 between 3.75% and 4%. Despite the potential for further cuts, market expectations lean towards maintaining rates through March, with a low probability of immediate changes. Following the announcement, equities showed little movement, with the S&P 500 and Nasdaq Composite both trading lower.

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