At its meeting on January 28-29, the Federal Reserve decided to keep interest rates unchanged, remaining in the range of 4.25% to 4.50%. Fed officials will continue to monitor inflation closely before making any further changes.

Federal Reserve participants expressed growing concerns regarding inflation driven by Trump’s policy proposals. Many businesses anticipate raising prices due to increased import tariffs, which could impact consumer costs.

The Fed officials indicated a cautious approach, acknowledging that inflation has largely stalled and currently sits around 2.5%. They are expected to hold rates steady until there’s clear evidence of a drop to 2%.