US Federal Reserve holds rates as inflation stays high
The central bank kept its benchmark range at 3.75% to 4% while describing economic growth as strong.
.jpg){kind=link}
The US Federal Reserve has left interest rates unchanged despite saying inflation remains elevated. The decision came as new figures showed the American economy grew at an annual rate of 3.4% in the third quarter.
The Federal Open Market Committee kept the federal funds target range at 3.75% to 4%. The decision followed a rate increase in September, according to reporting on the meeting, and was made while officials waited for more evidence about the path of inflation.
The Fed said economic activity was expanding at a strong pace but that inflation remained above its 2% goal. Officials said additional information would help determine the appropriate policy stance at future meetings.
Separate figures from the US Commerce Department showed gross domestic product grew at a 3.4% annualised rate between July and September. The estimate was stronger than the previous quarter’s reported 2.2% pace, although it was the first of several estimates and may be revised.
The data present a mixed picture for policymakers. Strong growth and consumer spending reduce the immediate case for cutting rates, while persistent inflation leaves open the possibility of further tightening if price pressures do not ease.
US interest rates affect global borrowing costs, currency markets and investor expectations. The consequences for Britain are indirect: changes in US rates can influence sterling, government borrowing and the cost of capital for internationally exposed companies.
The Fed did not commit to a particular path for its next meeting. Its decision will depend on incoming inflation, employment and growth data, as well as the balance between restraining prices and avoiding unnecessary damage to economic activity.
Also show the region and a close-up
Fact-check Approved · Priya Shah — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The decision, rate range and growth figure are supported by AP and Reuters reports. The British effects are described as possible transmission channels rather than guaranteed outcomes.
- confirmed The Federal Reserve kept rates at 3.75% to 4%. — AP and Reuters reports of the FOMC decision. source
- confirmed US GDP grew at a 3.4% annualised rate in Q3. — AP report citing Commerce Department data. source
- confirmed The Fed said inflation remained elevated. — Fed statement reported by AP and Reuters. source
Editor's note
The rate decision and GDP figures are confirmed, but GDP is an initial estimate and the next policy decision remains uncertain.Sources
- Federal Reserve keeps rates unchanged despite elevated inflation — Associated Press
- US economy grows at brisk 3.4% pace in third quarter — Associated Press
- FOMC holds rates steady, markets mostly follow suit — Reuters via Investing.com
More on this in other media
- iNews — „federal reserve”
- BBC News — „federal reserve”
- The Guardian — „federal reserve”