FED HOLDS RATES, FLAGS UNCERTAINTY AND RISING INFLATION RISKS
The Federal Reserve kept rates unchanged at 3.50–3.75%, giving no signal on timing of cuts and citing high uncertainty tied to Middle East tensions.
Key points:
🔸Economy still growing at a solid pace
🔸Job gains modest; unemployment stable
🔸Inflation now labeled “elevated” (up from “somewhat elevated”), driven by energy prices
🔸Fed watching risks to both growth and inflation
The decision passed 8–4, the most dissent since 1992:
🔸One member favored a rate cut
🔸Three opposed any easing bias
Bottom line: policy on hold, outlook uncertain, divisions rising inside the Fed.