Economic Buzz: US Fed holds rate steady at 3.75%-4%

The United States Federal Open Market Committee (FOMC) announced on Wednesday its decision to keep the target range for the federal funds rate at 3.75% to 4.00%, as expected.

In its statement, the FOMC noted that, despite geopolitical uncertainties that drive up inflation, domestic spending has remained strong. The Federal Reserve also noted resilient productivity growth, capital investment, and the job market. The committee opted against pre-committing to a specific rate path in the near future, while stressing its dedication to returning inflation to the 2% target.

Moreover, the Fed pointed out that the decision was made after a 10?2 vote, as its officials Lisa Cook and Beth Hammack supported a 25-basis-point hike.

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