The Federal Reserve announced Wednesday that it would hold its interest rates steady in its second meeting of 2025.
The Fed’s decision to maintain its target range at 4.25% to 4.5% met economists’ expectations. The announcement comes after the consumer price index, a broad measure of the price of everyday goods, rose 0.2% in February, the Bureau of Labor Statistics reported on March 12.
The central bank similarly decided to hold interest rates steady in its January meeting. In 2024, the Fed cut interest rates three consecutive times, a half point cut in September, a quarter point cut in November and a quarter-point cut in December.
Notably, there was a significant spike in inflation during former President Joe Biden’s four-year term, which led to many Americans having difficulty making ends meet. Ahead of President Donald Trump’s November 2024 election victory,…
