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The Fed Holds Interest Rates at 3.50% - 3.75%
The United States central bank announced its decision to hold its benchmark interest rate steady in the range of 3.50% - 3.75%. The decision to maintain this interest rate marks a halt to rate cuts in two consecutive FOMC meetings.
In its latest projections, The Fed now expects only one rate cut in 2026 and one in 2027. This stance is driven by an upward revision of the Personal Consumption Expenditures (PCE) inflation forecast for 2026, which was revised up to 2.7%. Additionally, The Fed stated that the implications of geopolitical developments in the Middle East on the current economy remain shrouded in uncertainty.
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