US Federal Reserve keeps interest rates unchanged at 4.25%-4.5%

The U.S. Federal Reserve held its benchmark interest rate steady at 4.25%-4.5% on Wednesday, in line with expectations.

In a statement, the Fed noted that economic activity has expanded at a steady pace, and the unemployment rate remains stable at low levels. However, the bank pointed out that inflation is still “somewhat elevated.”

The Fed reaffirmed its commitment to achieving maximum employment and reducing inflation to its 2% target. After maintaining the rate at a high of 5.5% between July 2023 and September 2024, the Fed has gradually lowered it in the last three meetings to the current level.