Fed holds interest rates after trio of cuts 

The unemployment rate has “stabilized” and the labor market is “solid,” officials said

share


This is a segment from the Forward Guidance newsletter. To read full editions, subscribe.


The FOMC today, as expected, held interest rates steady. 

The unemployment rate has “stabilized” and the labor market is “solid,” officials said. Inflation, on the other hand, “remains somewhat elevated.” 

“The committee judges that the risks to achieving its employment and inflation goals are roughly in balance,” the statement read. “The economic outlook is uncertain, and the committee is attentive to the risks to both sides of its dual mandate.” 

Today’s pause comes after three consecutive interest rate cuts at the end of last year. In the committee’s most recent projection materials, the majority of participants expected to end 2025 in the 3.75%-4% range. The current target range is 4.25%-4.5%. 

Whether or not we see two 25-basis point cuts in 2025, though, is anyone’s guess at this point. 

President Trump’s policy plans — mainly on tariffs and mass deportations — are expected to have significant impacts on inflation and the labor market, potentially undercutting the central bank’s mandate of reaching maximum employment with stable prices. Trump last week said he knows “interest rates much better” than FOMC members. 

Markets are largely expecting the FOMC to continue this pause through March, calling for only a 28% chance of a pause, according to data from CME Group. 

Equities were little changed in the moments after the decision. The S&P 500 and Nasdaq Composite remained in the red, trading 0.7% and 1% lower, respectively, as of 2:10 pm ET.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates.png

Research

The convergence of DePIN and energy generation aims to address modern grid challenges by incentivizing distributed generation.

article-image

Togo activist Farida Nabourema is fighting back with Bitcoin

article-image

Roshan Robert told Blockworks that OKX brought him on back in September to plan out its US expansion

article-image

Could we stop using BTC to amplify our short-term risks — and start using it to hedge our long-term ones?

article-image

Sol Strategies will be the tokenized stock platform’s first listing

article-image

Craig Fuller, CEO and founder of FreightWaves, breaks down how tariffs are and will impact shipping and inventories

article-image

This limited-edition run of sparkling water is more for existing traders than crypto newcomers, but mainstream distribution is part of the plan.