The Federal Open Market Committee (FOMC) voted to keep the benchmark interest rate unchanged for the second consecutive meeting. The decision reflects growing economic uncertainty as inflation remains somewhat elevated, while growth projections for 2025 have been revised downward. Federal Reserve Chair Jerome Powell's subsequent press conference reinforced the central bank's cautious stance, emphasising the Fed's readiness to react to incoming data while acknowledging risks posed by recent economic and policy developments.The Fed maintained its target range for the federal funds rate at 4.25% to 4.50%, citing a mix of solid economic activity and heightened uncertainties. The labor market remains strong, with unemployment stabilizing at 4.1%, yet inflation continues to hover above the Fed’s 2% target.
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