US Fed holds rates steady in Powell’s final meeting as Fed Chair | Business and Economy News

The central keeps interest rates steady at 3.5 – 3.75 percent amid inflation concerns and global economic strain

The United States Federal Reserve will hold interest rates steady at 3.5 to 3.75 percent as pressure on the labour market and inflation, amid the US-Israel war on Iran and subsequent retaliation, weigh on the global economy.

The central bank announced its decision, which was largely in line with economists’ expectations, on Wednesday, wrapping up the last two-day policy meeting led by Chairman Jerome Powell.

CME FedWatch, which tracks the likelihood of various monetary policy decisions, had a 100 percent expectation that the central bank would maintain rates.

Inflationary pressures on oil markets and a stagnant labour market have weighed on the central bank’s decision-making. The US Department of Labor is set to release its latest jobs report next week.

“Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook,” the central bank said in a statement.

“Job gains have remained low, on average, and the unemployment rate has been little changed in recent months. Inflation is elevated, in part reflecting the recent increase in global energy prices.”

The decision comes as Kevin Warsh, Trump’s handpicked replacement to succeed Jerome Powell, was confirmed by the Senate Banking Committee on Wednesday in a party-line vote, advancing his candidacy to the broader Senate.

More to come…