Fed keeps interest rate constant, in line with forecasts

ISTANBUL

The US Federal Reserve on Wednesday kept its federal funds rate unchanged in the 4.25%-4.50% range, as widely expected.

"The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run," it said in a statement.

"Uncertainty around the economic outlook has increased" added the Fed.

It stated that the Fed's Committee is strongly committed to supporting maximum employment and returning inflation to its 2% objective.

The decision to keep rates unchanged was supported by 11 out of 12 committee members.

"The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals," it added.

Fed's Chair Jerome Powell had hinted that there would be no change in the interest rates until US President Donald Trump's policies take shape.

“Despite elevated levels of uncertainty, the US economy continues to be in a good place,” Powell said on March 7. “We do not need to be in a hurry, and are well positioned to wait for greater clarity.”

The bank, keeping the rate at the historically high level of 5.5% from July 2023 to September 2024, gradually lowered it to 4.5%.