Fed holds rates and dampens expectations of March cuts

Jerome Powell
Jerome Powell
Federal Reserve/Flickr

The US’s Federal Open Market Committee (FOMC) voted unanimously on January 31 to maintain its policy rate, as its chair Jerome Powell said early cuts were unlikely.

The FOMC also released a statement hinting strongly that it was unlikely to cut rates at its March meeting. Its decision kept the federal funds rate in the range of 5.25–5.5%. 

US inflation, measured by the personal consumption expenditures index, remained at 2.6% year on year in December for the second month running. It remains above

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