The US Federal Reserve held interest rates steady at 3.50%–3.75% as expected, marking a pause in its rate‑cut cycle after three reductions in 2025. Policymakers noted that inflation remains somewhat elevated and the labor market shows signs of stabilization, leading them to wait for more economic data before adjusting borrowing costs further. Reuters reports the decision was not unanimous, with two officials favoring another quarter‑point cut, and markets are now watching for clues on the timing of future moves.
