Federal Reserve kept interest rates unchanged and the market is focused on the dollar: what will happen?
This decision will have an important impact on the price of the dollar. Photo: iStock
TL;DR
- The Federal Reserve (Fed) maintained its interest rates for the second consecutive meeting.
- Interest rates remain between 3.50% and 3.75%.
- The Fed cited uncertainty about the impact of the Middle East war on the US economy.
- Inflation forecasts for 2026 were revised slightly upwards to 2.7%.
- Economic growth projections were marginally improved to 2.4%.
- Unemployment is expected to stay at 4.4%.
- Most Fed officials (11 out of 12) voted to keep rates unchanged.
- One official, Stephen Miran, advocated for a quarter-point rate cut.
- The Fed is currently leaning towards only one quarter-point rate cut this year.
- The US government paused a law restricting foreign-flagged ships from transporting fuel between US ports for 60 days to ease energy prices.