The Federal Reserve's future moves on interest rates in 2025 will be in a narrow range unless the trajectory of inflation changes, Goldman Sachs CEO David Solomon said in comments posted on the firm's website on Wednesday.
Treasury yield is hovering just above a six-week low around 4.50% as investors continue to digest Wednesday’s monetary policy update from the Federal Reserve. The U.S. central bank left interest rates unchanged at a range of 4.
The Federal Reserve opted to leave its benchmark interest rate unchanged in its first policy meeting since President Trump's inauguration.
Central bank policymakers are widely expected to stand pat on interest rates. Investors await further details from Fed Chair Jerome Powell’s press conference.
The U.S. economy grew 2.3% in the fourth quarter as consumers again powered gains. Here's what the showing could mean for Fed plans for more rate cuts
WASHINGTON — The Federal Reserve left its benchmark interest rate unchanged Wednesday after cutting it three times in a row last year, a sign of a more cautious approach as the Fed seeks to gauge where inflation is headed and what policies President Donald Trump may pursue.
The U.S. Federal Reserve is expected to hold interest rates steady on Wednesday as it awaits further inflation and jobs data and more clarity on the economic impact of President Donald Trump's policies before deciding whether to cut borrowing costs again.
Outside of a U.S. President bending norms, the Fed also faces challenges in achieving its economic objectives. Inflation remains above its 2% target: Its preferred measure is at 2.4%, though core prices — considered a better gauge of where inflation is headed — rose 2.8% in November from a year ago.
The Fed reduced its rate last year to 4.3% from 5.3%, in part out of concern that the job market was weakening. Hiring had slowed in the summer and the unemployment rate ticked up, leading Fed officials to approve an outsized half-point cut in September. Yet hiring rebounded last month and the unemployment rate declined slightly, to a low 4.1%.
The Fed will likely pause its rate cuts this week. After that, uncertainty over Trump's tariff, immigration plans make forecasting rates a dice roll.
The U.S. economy is in a “sweet spot” and the market is possibly too pessimistic on the pace of Federal Reserve interest rate cuts.
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