US Federal Reserve Interest Rate: Wall Street Closed Lower After Powell Kept Rate Unchanged

The US Federal Reserve decided to hold its key interest rate steady on Wednesday (January 29), maintaining it in the range of 4.25%-4.5%. The decision by the central bank’s Federal Open Market Committee (FOMC) came as anticipated, following a series of rate cuts since September 2024.

In the past three months, the Fed had reduced the overnight borrowing rate by a total of one full percentage point. However, in its latest meeting, the central bank opted for a pause, signalling a more cautious approach as it assesses economic conditions.

Reaction of US Stock Markets

Benchmark indices on Wall Street closed lower overnight after the decision on Federal Reserve interest rates. Nasdaq settled 0.52% lower to 19,630.73. Separately, the US trade deficit in goods, which has been on Trump’s radar for long, widened to a record high in December, surging 18% to $122.1 billion. Goods imports increased by 3.9%, while exports dropped 4.5%.

Flat Start of Gifty Nifty in India

On January 30, 2025, GIFT Nifty futures were trading flat at 07:58 AM, with a slightly positive growth of 10 points as compared to Nifty futures’ last close, at 23,146.

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