The Federal Reserve left interest rates unchanged in its first meeting of the year after a series of 2024 rate cuts.

Chairman Jerome Powell said the central bank currently has no plans for changes in the strong economy. 

Though the Fed pointed out that inflation lingers despite its prior rate cuts, it pointed to healthy economic activity, stable, low unemployment, and a strong labor market as reasons to stay with the status quo for now.

But, it said, “The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate,” the Fed said in a statement after its meeting, referring to its goals of maximum employment balanced with a 2% long-term inflation rate.

The reference to uncertainty comes a little more than a week after President Donald Trump’s inauguration. Market watchers are waiting to see effects of Trump's trade tariffs that many believe could increase inflation.

Cox Automotive observed that auto loan rates, after dropping last year, turned in the opposite direction this month.

In the fourth quarter, loan rates on new vehicles fell by nearly a percentage point, and those for used vehicles dropped half a point, Cox said.

But, “The volume-weighted average new auto loan interest rate is up 61 basis points to 9.25% from a low of 8.64% in December,” said Cox Chief Economist Jonathan Smoke, who said the average new rate is still down 47 basis points year-over-year.

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