US Fed Holds Rates Steady Amid Inflation Concerns; Dollar Strength Pressures Emerging Markets

The Hindu · india

The U.S. Federal Reserve has maintained its benchmark interest rates between 3.75% and 4.0%, opting to await further economic data before considering changes due to persistent inflation. This decision, with a 10:2 voting pattern, was largely anticipated by markets. Governor Lisa Cook and Cleveland Federal President Beth Hammack voted for a 25 basis points hike. The Fed also announced plans to reduce the number of FOMC meetings starting in 2027, with one meeting dedicated to broader monetary policy strategy.