1st LD: U.S. Fed keeps interest rates unchanged at 4.25-4.5 pct


WASHINGTON, Jan. 29 (Xinhua) -- The U.S. Federal Reserve on Wednesday left the target range for the federal funds rate unchanged at 4.25 percent to 4.5 percent, as recent data showed inflation is picking up.

"The Committee judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate," the Federal Open Market Committee (FOMC), the central bank's policy-setting body, said in a statement after a two-day meeting.

"In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent," the statement said.

After its Sept. 17-18 meeting, the central bank slashed the target range for the federal funds rate by 50 basis points amid cooling inflation and a weakening labor market, marking the first rate cut in over four years and signaled the start of an easing cycle.

After its Nov. 6-7 meeting, it lowered the target range for the federal funds rate by 25 basis points. After its Dec. 17-18 meeting, it further reduced rates by 25 basis points, while indicating there would be fewer rate cuts in 2025, as it braces for uncertainty stemming from the Donald Trump administration's policies.

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