Fed holds rates steady for first policy meeting of 2025

The U.S. Federal Reserve has decided to keep its benchmark interest rate unchanged in its first monetary policy meeting of the year, and the first since President Donald Trump's inauguration.

Following a two-day meeting, the Federal Open Market Committee announced on Wednesday, that it would maintain the rate at its current range of 4-point-2-5 percent to 4-point-5 percent.

The decision marks a pause in the Fed's rate cutting cycle, which had seen three consecutive reductions in September, November and December last year.

The Fed's cautious stance despite Trump's public calls for rate cuts,. suggests that it is waiting to assess the impact of the new administration's policies.