Since September of last year, Federal Reserve officials have lowered interest rates by a full percentage point. However, with inflation's downward momentum stalling, they signaled in December that they would take a more cautious approach in 2025. It is widely expected that Federal Reserve decision-makers will maintain stable interest rates at the meeting later this month.
Federal Reserve Chairman Powell stated that further rate cuts would require new progress in achieving the 2% inflation target, as the Fed's preferred inflation measure rose by 2.4% year-on-year in November last year.
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