U.S. FED KEEPS INTEREST RATES UNCHANGED – The Federal Open Market Committee will monitor the implications of incoming information
The U.S. Federal Reserve left the target range for the federal funds rates unchanged at 4.25 percent to 4.5 percent, as solid expansion of economic activity supports the wait-and-see mode.
This widely-expected decision marked the fourth time that the Fed chose to keep the benchmark interest rates unchanged in a row.
The Federal Open Market Committee will continue to monitor the implications of incoming information for the economic outlook, said the statement.
Notably, Federal Reserve Board members and Federal Reserve Bank presidents projected higher unemployment and inflation for 2025, 2026 and 2027 and adjusted lower forecasts of U.S. economic growth in 2025 and 2026.
In particular, the median forecast for personal consumption expenditure inflation in 2025 rose to 3 percent, up from 2.7 percent in the previous monetary meeting, according to the Summary of Economic Projections issued on Wednesday.
The median forecast for the unemployment rate in 2025 increased by 0.1 percentage point to 4.5 percent while unemployment in 2026 was expected to remain at 4.5 percent, higher than the earlier median forecast of 4.3 percent.
The United States would see economic growth of 1.4 percent in 2025, lower than previous forecast of 1.7 percent, according to the Summary of Economic Projections.
The latest forecast means that the Fed would have less room to cut amid persistent inflation pressures from higher tariffs and supply chain adjustments.
