Federal Reserve Holds Interest Rates Steady for the Second Consecutive Meeting

The U.S. Federal Reserve has decided to maintain interest rates in the range of 4.25% to 4.50%, marking the second consecutive pause, widely anticipated following a cumulative 100 basis-point rate cut late last year.

The Federal Open Market Committee (FOMC) highlighted key observations in its recent statement:

• Continued strong economic expansion.
• Robust labor market conditions with low unemployment.
• Slightly elevated inflation levels.
• Targeting a long-term inflation rate of 2%.
• Increased uncertainty in economic forecasts.
• Ongoing reduction in the Fed’s securities holdings, with a planned slowdown in Treasury bond reductions starting in April.
• The readiness to adjust monetary policy stance as necessary.
• Persistent focus on monitoring labor market trends, inflation data, and broader financial and international developments.

Notably, all 12 committee members unanimously voted to keep rates unchanged, with only one member advocating for continuing bond reductions at the current pace.