The U.S. Fed keeps key rate unchanged after three rate cuts

The regulator's choice was clarified by the "somewhat heightened" rate of inflation in the US, along with a labor market that was stronger than anticipated. Maintaining the rate can also be viewed as a reaction to President Donald Trump, who has expressed his goal of achieving a swift and significant decrease.

The duration of the pause in the Fed's policy easing is still uncertain: the upcoming rate path may be influenced by the execution of the new president's economic strategies - nonetheless, the mere anticipation of adjustments has already impacted monetary policy.

At the conclusion of the January meeting, the Committee on Open Markets of the US Federal Reserve System unanimously decided to maintain the interest rate at 4.25-4.5% per annum. Before that, the regulator decreased it at three successive meetings: in September, November, and December - totaling a 1 percentage point reduction.

Simultaneously, as indicated in the minutes from the December meeting (released in early January), the majority of committee members at year-end expressed the necessity for a "more prudent approach" to reducing rates. This is also the reason the present decision was anticipated.

source: cnn.com