US Federal Reserve keeps interest rates unchanged

The U.S. Federal Reserve kept interest rates unchanged on Wednesday, aligning with market expectations, as it paused to assess whether the acceleration in inflation is temporary or requires further tightening. The Federal Open Market Committee voted on Wednesday to maintain the benchmark interest rate in a range of 3.75% to 4%, after raising it by 25 basis points at the previous meeting, the first increase since 2023. The Fed’s decision on Wednesday matched market expectations, as data showed investors priced in less than a 10% chance of a quarter-point rate hike this week, but favored a rate increase at the final monetary policy meeting of the year in December. The decision to hold rates steady comes as President Donald Trump continues to pressure the Federal Reserve to lower borrowing costs. Following the September rate hike, Trump called for a rapid reduction in interest rates to 1% or lower, putting his stance at odds with the central bank’s approach of maintaining restrictive monetary policy to combat inflation.