The Federal Reserve ended its two-day monetary policy meeting on the 29th and announced that it will maintain the target range for the federal funds rate between 4.25% and 4.50%. This is the first time the Federal Reserve has kept interest rates unchanged since its consecutive rate cuts in September 2024. In a statement released on the same day, the Federal Reserve stated that the US economy continues to expand at a steady pace. In recent months, the unemployment rate has remained stable at a low level, and the labor market conditions remain stable, but inflation is still "to some extent high" and the economic outlook is "uncertain". The statement stated that the risks of achieving employment and inflation targets are "roughly balanced". When considering the magnitude and timing of further adjustments to the target range of the federal funds rate, the Federal Reserve will carefully evaluate future data, constantly changing prospects, and risk balance. The Federal Reserve will continue to reduce its holdings of treasury bond, institutional bonds and institutional mortgage-backed securities, and is firmly committed to supporting the dual goals of maximizing employment and recovering inflation to 2%. Federal Reserve Chairman Powell said at a press conference after the meeting that the inflation level in the United States has significantly eased in the past two years, but it is still relatively high compared to the Fed's 2% inflation target. At the past three monetary policy meetings, the Federal Reserve has lowered the federal funds rate by one percentage point from its peak. Given the progress of inflation and the rebalancing of the labor market, it is appropriate for the Federal Reserve to readjust its policy stance at this meeting. On the 15th, the US Department of Labor released data showing that the US Consumer Price Index (CPI) increased by 0.4% month on month in December 2024, the largest increase since March 2024. After excluding volatile food and energy prices, the core CPI increased by 3.2% year-on-year, exceeding the long-term target of 2%. (New Society)