The Fed maintained its benchmark rate at 3.50%-3.75% in January, as officials weighed AI's economic potential against financial stability concerns amid persistent inflation.
In January, the Federal Open Market Committee chose to keep the benchmark interest rate at 3.50%-3.75% with broad consensus among policymakers. Officials were split on whether artificial intelligence would enhance productivity enough to outweigh potential financial risks. Inflation remains about 1% above the Fed’s 2% target, and market expectations now point to possible rate cuts in June and September.