For the fifth consecutive time... the US Federal Reserve holds interest rates steady

The Federal Reserve (the US central bank) kept interest rates unchanged for the fifth consecutive time and the second under Chair Jerome Powell, maintaining them in the range of 3.50% to 3.75%.

The decision was made by a vote of 9 in favor and 3 against, with the Fed reaffirming its ongoing policy of maintaining adequate levels of reserves within the banking system.

The statement from the Federal Open Market Committee noted that economic activity continues to expand at a strong pace despite high uncertainty, partly attributable to the ongoing conflict in the Middle East. It highlighted robust growth in productivity and capital investment, alongside job gains keeping pace with labor force growth and an unchanged, stable unemployment rate.

Regarding prices, the statement pointed out that inflation remains elevated relative to the Committee’s 2% target, partly reflecting supply-side shocks that have pushed prices higher in specific sectors, notably energy. The Committee reiterated its commitment to achieving price stability.