Investors digest the interest rate decision of the Fed

The yields of the US Treasury were slightly lower on Thursday while investors weighed the first interest rate decision of the Federal Reserve of 2025.

The 10 -year treasure yield was 6 basis lower than 4.492%. Meanwhile, the yield of the treasure at 2 years was down 3 base points to 4.197%.

A basic point is 0.01% and yields and prices are changing in opposite directions.

On Wednesday, the Federal Open Market Committee of the Central Bank left its loan rate of the day to the next day unchanged to a range between 4.25% to 4.5%, in a decision that investors provided after three consecutive cups since September 2024.

Political decision-makers have noted in a post-reunion declaration that “inflation remains somewhat high” and “the unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid”.

They added that the central bank should see “real progress on inflation or weakness in the labor market before considering making adjustments”.

Investors proclaimed almost 100% that the Fed maintains the stable rates at this meeting and did not see another reduction to come before June.

During a press conference following the decision, the president of the Fed, Jerome Powell, said that he would not respond to the requests of President Donald Trump for immediate interest drops and that he had “no contact” with Trump since the comments were made last week.

“I’m not going to have an answer or comment on what the president said,” Powell said at his press conference on Wednesday. “It is not suitable for me to do so.”

Investors are also waiting for other economic data, including reading the gross domestic product of the fourth quarter and unemployed weekly complaints, both Thursday morning.

They will also examine the report on the personal consumer price index on Friday for December – Fed’s favorite inflation gauge.