Federal Reserve holds rates steady as Jerome Powell dampens March cut hopes

Experts look to mid-year cuts

The Federal Reserve has held interest rates unaltered for another consecutive month, as chair Jerome Powell dashes hopes that cuts could start as early as March.

The decision to leave the target range for the federal funds rate at 5.25%-5.5%, a 22-year high, was widely predicted by the markets. In a statement on Wednesday (31 January), the Fed said the risks to achieving maximum employment and its inflation goal of 2% are moving into a "better balance". Despite this, Fed chair Jerome Powell said in a press conference that inflation is "still too high", and it would not be appropriate to cut rates until they have "greater confidence" in reaching the 2% target. Federal Reserve sparks market rally as it signals rate cuts in 2024 He added th...