Fed Maintains Interest Rates

(MENAFN) The US Federal Reserve kept its benchmark federal funds rate steady on Wednesday, maintaining it within the 3.5% - 3.75% target range, as broadly anticipated.

This decision ended a series of three consecutive rate cuts. Prior to its September 2025 meeting, the central bank had kept rates unchanged in five successive meetings before opting to reduce them.

The Fed indicated that current data points to economic activity expanding at a "solid" pace.
"Job gains have remained low, and the unemployment rate has shown some signs of stabilization," the central bank stated, while also noting that inflation continues to be "somewhat" elevated.

The Federal Open Market Committee (FOMC), responsible for determining interest rates, aims to achieve maximum employment and a long-term inflation rate of 2%, according to the Fed.

"Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate," the statement emphasized.

In evaluating any potential changes to the policy's target range, the FOMC will "carefully" review incoming data, shifting projections, and the overall balance of risks, the Fed explained.

The recent 25 basis point rate cut received backing from 10 of the 12 governors, with Stephen Miran and Christopher Waller favoring a reduction of the same magnitude.

The decision followed a labor market showing mixed results in recent months, with the Fed continuing to prioritize maximum employment and stable prices as part of its dual mandate when shaping monetary policy.

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