WASHINGTON— The Federal Reserve held its benchmark interest rate steady Wednesday, leaving the federal funds target range at 3.50% to 3.75% as policymakers said the economy continues to expand at a “solid pace” but inflation remains elevated and uncertainty has intensified.
In its post-meeting statement, the Federal Open Market Committee said job gains have remained low and unemployment has changed little in recent months, while reiterating that inflation is still running above the central bank’s 2% target. The Fed also explicitly flagged rising geopolitical risk, saying the economic implications of developments in the Middle East for the U.S. economy remain uncertain.
The decision was not unanimous. The Fed said Stephen Miran dissented in favor of a quarter-point rate cut, preferring to lower the target range at this meeting.
The hold keeps the Fed in a wait-and-see posture as it balances a softer labor market against stubborn price pressures. In its statement, the Committee said it will “carefully assess incoming data, the evolving outlook, and the balance of risks” before making any further moves, while emphasizing it remains “strongly committed” to maximum employment and returning inflation to 2%.