Fed holds interest rates steady as inflation remains above 2% (1 Viewer)

[Politics - CBSNews.com]

The Federal Reserve said Wednesday that it will leave its benchmark rate unchanged, hitting the brakes on lowering borrowing costs for individuals and businesses after a flurry of rate cuts starting last fall.

The Fed said it will maintain the federal funds rate at its current range of 4.25% to 4.5%. The decision comes after the central bank trimmed rates three times starting in September 2024, which has pushed down the federal funds rate — the rate banks charge each other for short-term loans — by one percentage point.

The pause, the Fed's first...

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