After implementing three rate cuts in late 2024, the central bank has opted to keep its benchmark federal funds rate steady at 4.25% to 4.50%. The pause comes as inflation showed signs of stubborn persistence,

The Federal Reserve left interest rates unchanged on Wednesday, as the central bank turned cautious on further cuts amid a sturdy economy and uncertainty about inflation. The central bank’s decision to pause at its first meeting of 2025 followed a series of cuts that began in September to account for progress already made on getting inflation down.