Fed Holds Rates Steady, Cautions on Stubborn Inflation

• The US Federal Reserve maintained its target range for the federal funds rate at 3.5% to 3.75%.
• The decision reflects caution due to elevated inflation, despite solid economic expansion and stable unemployment.
• The Federal Open Market Committee (FOMC) noted steady economic activity and low job gains.
• Two Fed Governors, Stephen Miran and Christopher Waller, dissented, advocating for a 25-basis-point rate cut.
• Future policy adjustments will be data-dependent, focusing on labor market, inflation trends, and global developments.

Why It Matters: The Fed kept interest rates unchanged, emphasizing persistent inflation and a data-dependent approach for future policy.