#FedHoldsRates
The US Federal Reserve has decided to hold interest rates steady, signaling a cautious approach as it evaluates incoming economic data. While inflation has shown signs of cooling, it remains above the Fed’s long-term target, prompting policymakers to avoid premature rate cuts. A stable labor market and resilient consumer spending support the decision to pause. By holding rates, the Fed aims to balance inflation control with economic growth, reducing the risk of recession. Markets are closely watching future guidance, as any shift in inflation or employment could influence the Fed’s next move.