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Cryptopolitan 2025-01-29 19:08:34

Federal Reserve decides not to cut interest rates again, minutes released

The Fed just hit the brakes again. No rate cuts. No policy pivot. Minutes from their Jan. 28-29 meeting reveal they’re sticking to the 4.25% to 4.50% federal funds rate. Why? Inflation’s still hanging around. The Fed’s two main targets—maximum employment and 2% inflation—aren’t aligned yet, the officials said. They’re reportedly monitoring every move. Labor markets remain strong, with unemployment steady at low levels. Fed officials said that their entire strategy revolves around its dual mandate—keeping people employed and keeping inflation in check. Right now, inflation is a thorn in their side. Officials know that easing rates too soon could bring back runaway price spikes. “The Committee judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate,” said the minutes, but that balance comes with conditions. What’s the condition? Data. These guys are repeating once again that everything depends on incoming reports—on inflation trends, labor figures, and any changes in financial conditions. The minutes confirm that the Fed will keep reducing its holdings of Treasury securities and mortgage-backed debt to drain excess liquidity. No backing down on that front either. Officials also acknowledged uncertainty ahead. The global economy is having a rough time, supply chains haven’t fully recovered, and financial markets remain unpredictable. But they’ve allegedly built a buffer to handle shocks, and if risks get worse, they promised they’ll pivot. January 29th just isn’t that day. This comes as president Donald Trump said just last week that he was gonna force the Fed into cutting interest rates one way or another. Now with Powell’s speech coming up in a few minutes, many are expecting him to address the tension between him and the Oval. He has said before that the Fed is independent and doesn’t care about the wishes of any president. Though at first he wanted to fire him, president Trump has since changed his mind. Powell, for his part, said he was gonna sue if Trump attempts to challenge his power. Cryptopolitan Academy: Are You Making These Web3 Resume Mistakes? - Find Out Here

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