#FedHoldsRates
The Federal Reserve of the United States is poised to pause interest rate cuts
The Federal Reserve of the United States meets today to determine the direction of interest rates, in a key meeting for global markets, where it is expected to keep its benchmark rate unchanged and pause cuts for the first time since September, following three consecutive reductions.
The decision reflects the growing caution of the central bank in the face of inflation that remains above its target and mixed signals from the labor market. The main debate within the FED is when and under what conditions rate cuts could be resumed.
The answer depends on which risk materializes first, a more severe cooling of employment or a clearer and sustained slowdown of inflation towards the 2% target. For now, neither scenario has solidified.
Inflation remains stagnant around 2.8%, while employment growth has moderated, although the unemployment rate is stable.
