ISTANBUL, Jan 29 — The US Federal Reserve held its benchmark federal funds rate unchanged on Wednesday between the 3.5 – 3.75 per cent target range, as widely expected, Anadolu Ajansi reported.
This marked the end of a three-consecutive-rate-cut run, as the bank had held the rate unchanged in the five previous meetings before cutting it at its Sept. 2025 meeting.
The Fed said available data suggested that economic activity has been expanding at a “solid” pace.
“Job gains have remained low, and the unemployment rate has shown some signs of stabilisation,” said the central bank, adding that inflation remains “somewhat” elevated.
The Fed said the Federal Open Market Committee (FOMC), which makes decisions about interest rates, seeks to achieve maximum employment and inflation at the rate of 2 per cent in the longer run.
“Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate,” it emphasised.
The Fed said in considering the extent and timing of additional adjustments to the target range for the policy, the FOMC will “carefully” assess incoming data, the evolving outlook, and the balance of risks.
The decision to lower the rate by 25 basis points was supported by 10 of 12 governors, with Stephen Miran and Christopher Waller voting for a 25 basis point rate cut.
The move followed a mixed labour market in recent months. Maximum employment and stable prices are the dual mandate the Fed watches when determining monetary policy.
The employment gradually recovered in recent months after slowing in late 2025.
Nonfarm payrolls increased by 50,000 in December and by 56,000 in November, while the unemployment rate fell to 4.4 per cent.
On the inflation front, the consumer price index (CPI) was up 2.7 per cent annually in December, while rising 0.3 per cent month-on-month, both matching expectations.
Trump has repeatedly demanded that the central bank cut interest rates, citing moves by the European central banks, and warned that delays could stall the US economy.
Despite the political pressure, the Fed kept the rate unchanged for most of last year before starting an easing cycle due to a weakening labour market.
