In their first monetary policy decision since Donald Trump took office on January 20, Fed members voted unanimously to keep rates between 4.25% and 4.50%.

The US Federal Reserve (Fed) on Wednesday held its benchmark interest rates steady, refusing to give in to pressure from President Donald Trump to continue lowering the cost of money.

In their first monetary policy decision since Trump took office on Jan. 20, Fed policymakers voted unanimously to hold rates between 4.25% and 4.50%, the central bank said in a statement after two days of meetings.

The Fed's Federal Open Market Committee left the federal funds rate unchanged in its first policy announcement of the year, pausing a three-cut cycle that it has maintained since September, November and December 2024.

Thus, it left the rate in a range of 4.25 to 4.50%, a level that it reached in December 2022 and also in December 2007.

The statement said that “recent indicators suggest that economic activity has continued to expand at a solid pace, the unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid. However, inflation remains high.”

US inflation rose by 2.9% at the end of 2024, higher than the 2.7% seen in November.

Awaiting the usual press conference at the end of the two-day FOMC monetary policy meeting, chaired by Fed Chairman Jerome Powell.