The Federal Reserve reports that US economic activity is expanding at a solid pace, with low job gains, a stable unemployment rate, and elevated inflation partly driven by higher global energy prices.
The Federal Open Market Committee kept the federal funds rate unchanged at 3.5%–3.75%, citing continued uncertainty, including geopolitical developments in the Middle East. Officials emphasized a data-dependent approach while reaffirming their dual goals of maximum employment and 2% inflation over the long run.
The vote was split, with most members supporting the decision, while a few preferred either a rate cut or different policy language, reflecting differing views on how to balance inflation risks and growth stability.
