Washington [US], January 29: The US Federal Reserve (Fed) decided to keep interest rates unchanged on January 28th after its first policy meeting of the year.
Following a two-day policy meeting of the Federal Open Market Committee (FOMC), the Fed decided on January 28 to keep its benchmark interest rate unchanged at 3.5-3.75%. Ten members of the Board of Governors supported keeping the rate unchanged, while two opposed it. The Fed's decision matched market expectations, Reuters reported.
According to Fed Chairman Jerome Powell, the US economy is stabilizing, and the risks of inflation and job losses are decreasing. In 2025, the Fed cut interest rates three times after recording gloomy employment figures.
Despite assessing "job growth as still low," the Fed no longer perceives risks to the job market as increasing. This suggests policymakers have reduced concerns about a rapid weakening in the labor market. The Fed's announcement offered no clue as to when the next interest rate cut will occur. They only emphasized that this depends on actual data and the upcoming economic outlook.
Speaking at a press conference on January 28, Powell also emphasized the independence of the central bank, amid repeated pressure from US President Donald Trump on the Fed.
"Independence isn't about protecting policymakers or anything like that. It's simply a common practice in every developed economy and every democracy in the world," he said.
According to CNBC, Fed Chairman Powell left open the possibility of easing monetary policy after commodity prices fell. "The impact of tariffs on commodity prices will peak and then cool down, provided there are no further major tariff increases," Powell noted.
Source: Thanh Nien Newspaper
