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Fed Holds Rates Steady Amid Inflation, Canada Cuts Rates

1/30/2025

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Story summary
  • The Federal Reserve held its benchmark interest rate steady, indicating caution due to inflation and political factors.
  • Fed Chair Jerome Powell noted a strong job market and high inflation, hinting at limited future rate cuts.
  • The Bank of Canada reduced rates by 25 basis points amid trade uncertainties with the U.S.
  • Canada’s December jobs report revealed strong employment growth, with unemployment at 6.7% and inflation at 1.8%.