Bankrate's experts are reacting live to the Federal Reserve's January interest rate decision

Since its inception in 1976, Bankrate has been the top source for information on interest rates and the Federal Reserve. Follow along to see what our expert staff of reporters, writers, editors and financial analysts are watching.

Sarah Foster

Principal U.S. Economy and Federal Reserve Reporter

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Economy

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Federal Reserve

8 Years of experience

Principal writer Sarah Foster covers the Federal Reserve, the U.S. economy and economic policy for Bankrate, where she helps readers understand how the world's most powerful policymakers in Washington, D.C., impact their personal finances. She's covered the Federal Reserve and U.S. economy since 2018, when she joined the economics news team at Bloomberg News.

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Sarah Foster

1/29/2025, 6:57 AM EST

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The Fed will likely hold off on a rate cut today. How long will they be on pause?

It's time to get ready for the Federal Reserve's first meeting of 2025. The rate-setting Federal Open Market Committee (FOMC) doesn't look like it's going to cut interest rates a fourth consecutive time when it wraps up its two-day meeting today. But Fed watchers are going to be looking for clues that might indicate just how long the Fed plans to sit on the sidelines.

At this point, though, even U.S. central bankers might not know.

Here's what to watch at today's decision:

Inflation has been dicey, and the U.S. economy looks stable: Officials want to know whether inflation's route to 2% is on a detour -- or indefinitely derailed. The latest data hasn't been so positive, with prices heating up for a third straight month to 2.9 percent. The Fed said in December that they plan to take a much more cautious approach with interest rate cuts, penciling in only two rate cuts for this year.

President Donald Trump's policies could make it harder for the Fed to defeat inflation: As policymakers take a step back from rate cuts to assess inflation, economists say Trump's economic policy playbook (lower taxes, deportations and tariffs) could potentially reignite inflation. Powell said in December that some policymakers had boosted their inflation forecasts because of it.

Trump is also back to commenting on Fed policy: Old habits die hard for the chief executive, who said in comments during his first week back at the White House that he would demand that interest rates drop "immediately." Powell will likely stick to his usual script, refraining from commenting on Trump's critiques and instead pointing to economic fundamentals that justify its decisionmaking. The best thing you can do when you fear that your independence is under attack is explain your decision making "as carefully as you can," Bill English, the FOMC's former director of its Division of Monetary Affairs, told me in a recent interview.

What to watch at the Fed's January meeting

Americans got a taste of the rate cuts they were craving last year. It might be a while before they see any more.

Read more

The Fed will likely hold off on a rate cut today. How long will they be on pause?

It's time to get ready for the Federal Reserve's first meeting of 2025. The rate-setting Federal Open Market Committee (FOMC) doesn't look like it's going to cut interest rates a fourth consecutive time when it wraps up its two-day meeting today. But Fed watchers are going to be looking for clues that might indicate just how long the Fed plans to sit on the sidelines.

At this point, though, even U.S. central bankers might not know.

Here's what to watch at today's decision:

Inflation has been dicey, and the U.S. economy looks stable: Officials want to know whether inflation's route to 2% is on a detour -- or indefinitely derailed. The latest data hasn't been so positive, with prices heating up for a third straight month to 2.9 percent. The Fed said in December that they plan to take a much more cautious approach with interest rate cuts, penciling in only two rate cuts for this year.

President Donald Trump's policies could make it harder for the Fed to defeat inflation: As policymakers take a step back from rate cuts to assess inflation, economists say Trump's economic policy playbook (lower taxes, deportations and tariffs) could potentially reignite inflation. Powell said in December that some policymakers had boosted their inflation forecasts because of it.

Trump is also back to commenting on Fed policy: Old habits die hard for the chief executive, who said in comments during his first week back at the White House that he would demand that interest rates drop "immediately." Powell will likely stick to his usual script, refraining from commenting on Trump's critiques and instead pointing to economic fundamentals that justify its decisionmaking. The best thing you can do when you fear that your independence is under attack is explain your decision making "as carefully as you can," Bill English, the FOMC's former director of its Division of Monetary Affairs, told me in a recent interview.

What to watch at the Fed's January meeting

Americans got a taste of the rate cuts they were craving last year. It might be a while before they see any more.

Read more

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Foster