FOMC Holds Rate at 4-1/4 to 4-1/2 Percent
The Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. It will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities. 12
The statement says economic activity has continued to expand at a solid pace, the unemployment rate has stabilized at a low level, and inflation remains somewhat elevated. 1
The Committee judges that risks to achieving its employment and inflation goals are roughly in balance. It says the economic outlook is uncertain. 1
Chair Powell said payroll job gains averaged 170,000 per month over the past three months, and the unemployment rate was 4.1 percent in December. He said GDP looks to have risen above 2 percent for 2024 as a whole. 1
The Committee will carefully assess incoming data, the evolving outlook, and the balance of risks when considering the extent and timing of additional adjustments to the target range. 1
The minutes record that the meeting was held January 28–29, 2025, and that newly elected members and alternates took their oaths of office for terms beginning January 28, 2025. 1