US Feds keep funds rates unaltered

(MENAFN) The US Federal Reserve announced on Wednesday that it would keep the federal funds rate unchanged at a target range of 4.25% to 4.5%, continuing its cautious approach as the economy shows signs of steady growth.

This marks the fourth consecutive time the central bank has opted not to alter interest rates, a move that had been widely anticipated by analysts.

In a statement, the Fed noted that while fluctuations in net exports have influenced economic figures, “recent indicators suggest that economic activity has continued to expand at a solid pace.”

The US economy continues to benefit from a strong job market and low unemployment, although inflation remains somewhat elevated. Despite a more stable outlook compared to previous months, the Fed acknowledged that “uncertainty about the economic outlook has diminished but remains elevated.”

The Federal Open Market Committee (FOMC) emphasized that it would keep a close watch on new economic data to guide future decisions.

Projections released alongside the statement indicated that Federal Reserve officials expect both inflation and unemployment to trend higher over the next few years. They also revised down forecasts for economic growth in 2025 and 2026.

Notably, the median forecast for personal consumption expenditure (PCE) inflation in 2025 was raised to 3%, up from 2.7% in the Fed’s previous economic outlook.

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