Fed holds steady amid inflation and geopolitical risks, keeps easing option alive
Rates on hold, easing bias preserved. In an 11–1 vote, the Fed left the policy rate unchanged at 3.50% -3.75% in line with expectations. Governor Miran dissented in favour of a 25 bps cut. By holding steady rather than tightening, officials signalled that the next move is still likely downward, though not imminent.
Fed speak: uncertainty dominates. The core message changed little. Policymakers stressed that uncertainty around the economic outlook remains elevated, adding that developments in the Middle East carry unclear implications for the US economy. The statement offers no guidance on how officials would trade off higher inflation against weaker economic activity, underscoring wide confidence bands around the outlook.
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