WASHINGTON (AP) — 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 Presi
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.
Regarding the Fed's key rate, Powell conveyed a more deliberate approach, noting that the economy is mostly healthy — the unemployment rate is a low 4.1% and growth topped 3% at an annual rate in the fall. Kathy Bostjancic, chief economist at Nationwide Financial, said Powell's comments suggest the Fed won't cut rates again until the middle of this year.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.
During the news conference, Powell was also asked about Trump's executive orders intended to limit diversity, equity, and inclusion programs, which Powell has previously backed. “I think that the the activities of the NGFS are not a good fit for the Fed, given our current mandate,” he said.
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