According to breaking news, the Fed has kept interest rates unchanged, as expected.
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Thus, the Fed paused its rate cuts after three consecutive reductions since September last year. The decision was in line with market expectations.
The Federal Open Market Committee (FOMC) released its decision, noting that Board members Christopher Waller and Stephen Milan voted against and supported a 25 basis point interest rate cut. The decision to keep rates unchanged was made with a 10-2 vote, compared to a 9-3 vote at the previous meeting.
The FOMC statement noted that signs of stabilization in the unemployment rate were beginning to emerge, but the removal of the phrase “increased downside risks to employment,” which had appeared in previous statements, was noteworthy. However, the Fed also stated that inflation was still slightly above target.
The statement also noted that uncertainty regarding the economic outlook remains high, and the committee will continue to closely monitor the risks to its dual mandate, which consists of both price stability and maximum employment. The Fed also pointed out that employment growth remains weak.
In its decision statement, the FOMC reiterated its long-term goals and monetary policy strategy, conveying the message that future steps will be shaped by economic data and the balance of risks.
*This is not investment advice.