US Federal Reserve Holds Interest Rate Steady

On January 28, the US Federal Reserve decided to keep its benchmark interest rate steady, maintaining it within the range of 3.5% to 3.75%. This move aligns with market predictions and comes after three consecutive rate cuts.

Fed officials indicated that economic activity is progressing steadily, albeit with low job growth and signs of stabilization in the unemployment rate. Inflation continues to remain above the target level, according to the press release.

The Fed emphasized its goal of achieving an inflation rate of 2%, stating that future rate adjustments will hinge on inflation trends.

In response to the Fed's announcement, Bitcoin's price exhibited minimal changes, trading around $89,300 with a slight 2% increase over the preceding day. Other top assets also showed subdued responses to the decision.

During a press conference, Fed Chair Jerome Powell remarked on the current monetary policy, confirming its stability. He acknowledged persistent inflationary pressures and noted that labor market indicators remain a concern.

Additionally, a recent report revealed that the Consumer Price Index decreased by 0.3% in December, with an annual rate of 2.7%, a decline from 3% in October.