By Mucahithan Avcioglu
ISTANBUL (AA)—The US Federal Reserve held its benchmark federal funds rate unchanged on Wednesday between the 3.5% - 3.75% target range, as widely expected.
This marked the end of a three consecutive rate cut run, as the bank had held the rate unchanged in the five previous meetings before cutting it at its Sept. 2025 meeting.
The Fed said available data suggested that economic activity has been expanding at a "solid" pace.
"Job gains have remained low, and the unemployment rate has shown some signs of stabilization," said the central bank, adding that inflation remains "somewhat" elevated.
The Fed said the Federal Open Market Committee (FOMC), which makes decisions about interest rates, seeks to achieve maximum employment and inflation at the rate of 2% in the longer run.
"Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate," it emphasized.
The Fed said in considering the extent and timing of additional adjustments to the target range for the policy, the FOMC will "carefully" assess incoming data, the evolving outlook, and the balance of risks.
The decision to lower the rate by 25 basis points was supported by 10 of 12 governors, with Stephen Miran and Christopher Waller supporting a 25 basis point rate cut.
The central bank had kept the rate at the historically high level of 5.5% from July 2023 to Sept. 2024 before gradually lowering it to 4.5% in Dec. 2024.