US Fed Holds Rates Steady: Powell Cites Strong Economy, Low Inflation Risks
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Moneycontrol•29-01-2026, 07:54
US Fed Holds Rates Steady: Powell Cites Strong Economy, Low Inflation Risks
- •The US Federal Reserve kept interest rates unchanged at 3.50%-3.75% during its January meeting.
- •Chairman Jerome Powell highlighted the surprising strength of the US economy and low risks for both inflation and employment.
- •Policymakers voted 10-2 to maintain the benchmark interest rate, suggesting a potential long wait for future rate cuts.
- •Powell indicated that a weakening labor market or inflation reaching the 2% target could prompt future action.
- •The Fed had previously cut rates by 0.25% in December, following similar cuts in October and September.
Why It Matters: US Fed maintains interest rates due to strong economy, signaling a cautious approach to future cuts.
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