Fed Holds Interest Rates Steady

(MENAFN) The US Federal Reserve decided on Wednesday to maintain its benchmark interest rate unchanged, following an 11–1 vote. The rate remains within the 3.5% to 3.75% range, aligning with analysts’ expectations and broader market projections.

The central bank aims to secure maximum employment while stabilizing inflation at 2% over the long term, stating: "Uncertainty about the economic outlook remains elevated." It further emphasized: "The implications of developments in the Middle East for the U.S. economy are uncertain."

Previously, in December 2025, the Fed reduced interest rates by 25 basis points, before opting to leave them unchanged again during its January meeting.

While there had been speculation that the Federal Reserve would persist in lowering borrowing costs ahead of the military actions carried out by the United States and Israel against Iran, rising inflationary pressures linked to the conflict have shifted expectations. As a result, predictions that the Fed will maintain its current rate levels have gained momentum.

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