Federal Reserve Holds Rates at 4.25% to 4.50%, Pausing After Three Cuts
On January 29, 2025, in Washington, D.C., the Federal Open Market Committee decided to maintain the target range for the federal funds rate at 4.25% to 4.50%. It was the first pause after three rate cuts in a row since September 2024.
The statement said economic activity had continued to expand at a solid pace, the unemployment rate had stabilized at a low level in recent months, labor market conditions remained solid, and inflation remained somewhat elevated.
The Committee said it seeks maximum employment and inflation of 2% over the longer run, judged that the risks to achieving its employment and inflation goals were roughly in balance, and noted that the economic outlook was uncertain and that it was attentive to the risks to both sides of its dual mandate.
The Committee said it would continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, and that, in considering additional adjustments, it would carefully assess incoming data, the evolving outlook and the balance of risks.
All 12 members voted in favor, with no dissent: Chair Powell, Vice Chair Williams, Barr, Bowman, Collins, Cook, Goolsbee, Jefferson, Kugler, Musalem, Schmid and Waller.
Under the implementation note, the interest rate on reserve balances was maintained at 4.4%, effective January 30, 2025, and the primary credit rate was maintained at 4.5%.
Related: Federal Reserve Cuts Rate by 25 Basis Points to 4.25%-4.50% in Third Cut of 2024
(Source: Federal Reserve)
Source: Federal Reserve
Published by GSM · USA (original Chinese edition)
Photo: 图：美联储主席杰罗姆·鲍威尔（Jerome Powell）官方肖像。（美联储官方照片，公共领域，经 Wikimedia Commons） / Photo: Official portrait of Federal Reserve Chair Jerome Powell. (Official Federal Reserve photo, public domain, via Wikimedia Commons)
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