"The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated, the central bank said in its release announcing the decision. Wednesday's decision was widely expected. CME FedWatch, a tool that tracks expectations for monetary policy, forecast a more than 97 percent chance that the central bank would hold rates steady."
"Available indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, and the unemployment rate has shown some signs of stabilization, the central bank said. The decision comes amid signs of stabilisation in the US labour market. The US economy added 584,000 jobs in 2025, marking the lowest annual job growth since 2003. Payrolls rose by 64,000 jobs in October and 50,000 in December."
"There are indications that the labour market may cool further in the months ahead. This week, both Amazon and UPS announced tens of thousands of job cuts, some of which were driven by a push towards increasing the use of artificial intelligence in the workplace. Another threat to the US economy and the job market comes in the form of a looming government shutdown. That can happen as early as Saturday, and depending on its duration, it could slow spen"
Federal Reserve will maintain interest rates at 3.5 to 3.75 percent. The Committee seeks to achieve maximum employment and inflation at 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. CME FedWatch showed a greater than 97 percent chance of a rate hold and expects two rate cuts in 2026, with the earliest likely in June. Available indicators suggest economic activity has been expanding at a solid pace, while job gains have remained low and the unemployment rate has shown signs of stabilization. Recent corporate layoffs and a looming government shutdown pose downside risks to the labour market.
Read at www.aljazeera.com
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