US Federal Reserve Holds Interest Rates Steady at 5.25-5.50% for 4th Straight Meeting

The US Federal Reserve has announced that it will keep its benchmark interest rates unchanged at 5.25-5.50% for the fourth consecutive meeting. The decision was made after a two-day meeting of the Federal Open Market Committee (FOMC) led by Fed Chair Jerome Powell. This move was in line with market expectations.

In its statement, the Fed mentioned that it does not expect to reduce the target interest rate range until it is confident that inflation is sustainably moving towards its target of 2%. The committee also stated that the risks to achieving its inflation and employment goals are becoming more balanced.

The central bank highlighted that although inflation has eased over the past year, it still remains elevated. The Fed’s prior statement in December 2023 had ruled out any consideration of rate cuts, disappointing investors who had hoped for an early start to rate cuts by March.

Since March 2022, the Federal Reserve has raised rates by a total of 5.25 percentage points in response to rising price pressures. However, inflation has now reached a point where the central bank deems it necessary to hold rates steady.

The next FOMC meeting, where further policy decisions will be deliberated, is scheduled for March 19-20.