Federal Reserve Maintains Rates Amid Strong Growth

The US Federal Reserve has decided to keep its benchmark interest rate steady at 4.25-4.50% during its first monetary policy meeting of 2025 under President Trump's administration. This decision comes after a series of three rate cuts last year, as the Fed assesses economic conditions amid strong US growth and elevated inflation. Despite Trump's calls for immediate rate reductions, the Fed remains cautious, emphasizing the need to evaluate incoming economic data and risks. Inflation is noted as 'somewhat elevated', and the job market is stable, leading the Fed to signal a careful approach to any future rate adjustments. The European Central Bank, in contrast, faces pressure to cut rates due to weakening economic conditions in the eurozone. The Fed's approach suggests a more hawkish stance, focusing on balancing inflation and employment goals while closely monitoring the impacts of Trump's economic policies.