Investors are digested Fed’s Interest Decision

US state dividends were slightly changed on Thursday when investors weighed the Federal Reserve’s first interest rate decision from 2025.

At. 03:30 one one was the 10-year-old Treasury outcome lower by four basic points to 4,5143%. Meanwhile, the 2-year-old Treasury Yield was down a base point to 4,2155%.

A basic point is equal to 0.01%, and yields and prices move in opposite directions.

On Wednesday, the Federal Bank’s Federal Open Market Committee left its overnight sloping frequency unchanged in an interval between 4.25%-4.5%, in one step expected by investors after three consecutive cuts since September 2024.

Politicians noticed in a statement after meetings that “inflation remains somewhat elevated” and “unemployment has stabilized at a low level in recent months and the labor market conditions remain solid.”

They added that the central bank should see “real progress with inflation or some weakness in the labor market before we consider making adjustments.”

Investors are priced in an almost 100% chance that Fed would keep the rates stable at this meeting, and do not see another cut that will come until June.

At a press conference after the decision, Fed -Chairman Jerome Powell said he will not respond to President Donald Trump’s demands for immediate interest rate packages and that he had no contact “with Trump since the comments were made last week.

“I don’t want any answer or comment on what the president said,” Powell said at his press conference Wednesday. “It’s not appropriate for me to do it.”

Investors are also awaiting additional financial data, including gross domestic product reading in the fourth quarter and weekly unemployed requirements, both out Thursday morning.

They will also look forward to Friday’s personal consumption costs for price index report for December – Fed’s preferred inflation meter.