Federal Reserve keeps interest rates unchanged in unanimous decision

The US Federal Reserve has decided to keep its key interest rate unchanged, citing a strong economy with some inflationary pressures. Chair Jerome Powell emphasized that while inflation has eased, it remains slightly above the Fed’s 2% target. The economy is expanding at a solid pace, with consumer spending holding up, but investment in equipment and housing has slowed. The labor market is stable, with unemployment at 4.1% and wage growth easing. Powell stressed the need for cautious monetary policy, announcing that the Fed will maintain the target range for the federal funds rate at 4.25% to 4.5%. The central bank is also conducting a review of its monetary policy framework to ensure economic stability.