On Wednesday, the Federal Reserve opted to keep its benchmark interest rate unchanged after reducing it three times consecutively last year. This decision reflects a more cautious stance as the Fed aims to assess the future direction of inflation and the policies that President Donald Trump may implement.
Last year, the Fed lowered its rate from 5.3% to 4.3%, partly due to concerns about a weakening job market. Over the summer, hiring had slowed, and the unemployment rate had increased, prompting Fed officials to approve an unusually large half-point cut in September. However, hiring recovered last month, and the unemployment rate declined slightly to a low of 4.1%.
More to follow.
The Associated Press contributed to this story.
