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ederal Reserve Chair Jerome Powell emphasized that the central bank is not on a predetermined course, citing the economy's strength and stability in housing and employment sectors as reasons for pausing rate cuts. The Fed kept the federal funds target rate at 4.25-4.5% after its January meeting, with no changes to the forecast of two rate cuts in 2025.

    Powell reiterated that the Fed will continue to take a cautious approach, looking for further progress on inflation before making adjustments. He dismissed President Trump's demand for lower interest rates, stating that the Fed won't be influenced by such requests and will focus solely on data-driven decisions.

    The Fed is taking a wait-and-see approach regarding the potential effects of Trump's policies, including tariffs and immigration changes. Powell noted that it's too early to predict how these policies will impact the economy, and the board needs time to assess their implications.

    With the recent strength of the economy and job market, some analysts believe that further rate cuts may not be necessary in 2025. While the Fed still forecasts two rate cuts this year, a March cut appears unlikely, with Powell stating that the committee doesn't need to rush into making policy adjustments.