An expected decision this week by the Federal Reserve to keep interest rates steady will help bottom lines in the banking sector, at least in the short term, Moody’s Ratings analysts said.

The Federal Reserve left interest rates unchanged on Wednesday, as the central bank turned cautious on further cuts amid a strong economy and uncertainty about inflation. The central bank’s decision to pause at its first meeting of 2025 followed a series of cuts that began in September to account for progress already made on getting inflation down.