The Federal Reserve has decided to hit pause on rate cuts for the time being, following a year where inflation finished well above the central bank's 2% target. Despite calls for further rate cuts to stimulate economic growth, the Fed's decision reflects a cautious approach in light of the latest data.

In a statement released following their meeting, the Federal Reserve cited concerns over rising inflation as a key factor in their decision. The decision comes as a surprise to many who had expected additional rate cuts in response to mounting economic challenges.

The move also marks a departure from President Trump's stance on interest rates, as he had been vocal in urging the Fed to continue cutting rates to boost the economy. The Fed's decision to pause rate cuts underscores the central bank's independence and commitment to maintaining price stability.

As uncertainty looms over the economy in 2025, the Fed's decision to pause rate cuts signals a cautious approach to economic policy. While the future remains uncertain, the central bank's actions will be closely monitored for their impact on inflation and economic growth.