Federal Reserve Maintains Interest Rates Amid Speculation On Future Cuts

According to PANews, the Federal Reserve has decided to keep the benchmark interest rate unchanged at 4.25%-4.5% following its January FOMC meeting, aligning with market expectations. The possibility of future rate cuts remains uncertain. A report from China International Capital Corporation suggests that it is premature to conclude that the Federal Reserve cannot lower rates in the future. The report highlights the reflexivity effect of interest rates, indicating that the current lack of expectation for a rate cut may actually facilitate such a move. This situation is compared to last September when fears of a recession paradoxically reduced the likelihood of an economic downturn. The current belief that rate cuts are impossible mirrors the previous concerns that the Federal Reserve needed to implement significant rate reductions.