US EditionFed keeps interest rates steady after three consecutive rate cuts
The Federal Reserve held rates at about 3.6% citing inflation above 2% and steady economic growth while two officials dissented for further cuts, economists predict two cuts later this year.
- On Wednesday, the Federal Reserve left its policy interest rate unchanged at about 3.6%, with the Federal Open Market Committee voting 10-2 to keep the target range between 3.50 per cent and 3.75 per cent.
- Policymakers cited solid growth and signs of job-market stabilisation, but inflation remains stubbornly above the Fed's two per cent target, prompting caution before further cuts this year.
- Governors Stephen Miran and Christopher Waller registered dissents, each preferring a quarter-percentage-point reduction; Miran, recently appointed by President Donald Trump, had pushed for half-point cuts before.
- Borrowers face unchanged borrowing costs for mortgages, car loans and businesses after the Fed's decision, and the decision is expected to prompt fresh criticism from President Donald Trump.
- Most economists expect two cuts this year, with markets eyeing June, while attention focuses on who will succeed Jerome Powell, Federal Reserve Chair, when his term ends in May.
393 Articles
393 Articles
US Federal Reserve Fed keeps interest rates at the same level – and it should stay that way for a longer time. Although President Trump is annoyed, some companies and their shareholders are pleased.
Why The Federal Reserve Paused Rate Cuts
The Federal Reserve held its benchmark interest rate steady on Wednesday, pausing a recent series of cuts as officials cited stronger economic growth and easing labor market risks. The Federal Open Market Committee voted to keep rates in a 3.5 percent to 3.75 percent range, ending three consecutive quarter-point reductions. Policymakers raised their outlook for economic growth and signaled greater confidence that employment conditions are stabil…
The US Federal Reserve decided to leave interest rates unchanged on Wednesday, as central bank Chairman Jerome Powell said the economy is strong and risks to inflation and employment have diminished. This could indicate that interest rates will not be cut anytime soon, meaning that borrowing costs for Americans will not fall.
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