US Federal Reserve Keeps Interest Rates Steady at 3.75% to 4%
The US Federal Reserve kept interest rates unchanged in the 3.75% to 4% range, amid persistent inflationary pressures and geopolitical uncertainty, reaffirming its commitment to price stability and returning inflation to the 2% target.
Translated by Qiyas from السياسة — Original source
- The decision was made by a vote of 10 in favor and 2 against... and inflation remains high
The U.S. Federal Reserve (the central bank) kept interest rates unchanged today, Wednesday, at a range of 3.75% to 4%, amid ongoing inflationary pressures and uncertainty linked to geopolitical developments.
In a statement following the meeting of the Federal Open Market Committee, the Fed clarified that the decision was approved by 10 votes against 2, with members Lisa Cook and Beth Hammack favoring a quarter-point increase in interest rates.
It noted that U.S. economic activity continues to expand at a strong pace, supported by resilient consumer spending, productivity growth, and robust capital investment, despite continued uncertainty partly stemming from geopolitical developments.
The Fed added that job growth is keeping pace with labor force growth, while the unemployment rate has seen no significant change.
The Committee emphasized that inflation remains elevated, noting that upcoming economic data will help determine the appropriate monetary policy to ensure inflation returns to the 2% target in a timely manner.
It reaffirmed its commitment to price stability, while continuing its policy aimed at maintaining ample reserves in the U.S. banking system.
