US Federal Reserve holds interest rates steady at 3.75 to 4 per cent
The Federal Reserve held rates steady in a 10-2 vote despite elevated inflation.
The Federal Reserve held interest rates steady on Wednesday, keeping its benchmark rate between 3.75 and 4 per cent. The central bank said inflation remains elevated but upgraded its view of the economy overall.
The decision was widely expected, with the Fed choosing to wait for more inflation data before moving again. Wall Street rose modestly, with the S&P 500 up 0.3 per cent and the Nasdaq also up 0.3 per cent.
The ASX is set to rise 0.5 per cent at the open. Two Fed officials dissented, wanting a rate hike instead.
Future rate moves depend on how inflation behaves in coming months.
- 3.75 to 4.00 per cent
- Interest rate range
- 10-2 decision
- Fed vote
- 2 per cent
- Inflation target
- Kevin Warsh
- Fed chair
Why it mattersThe Fed's rate decision shapes borrowing costs globally and influences what happens with other central banks, including Australia's.
AustraliaThe Fed's pause may ease pressure on the RBA to raise rates further, affecting Australian mortgage holders and savers.
Corroborated byperthnow.com.au
✓ Claims checked against the source. checked 1 h ago
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