US Fed Keeps Interest Rate Steady Amid Economic Uncertainty
Decision Marks Fifth Consecutive Pause; Trump Renews Calls for Lower Rates
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The US Federal Reserve held its benchmark interest rate steady at 3.5-3.75% amid economic uncertainty, including concerns over the Iran war, despite President Trump's calls for lower rates.
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Warum es wichtig ist
The Fed's decision comes amid heightened geopolitical tensions and economic uncertainty globally.
By Song Sang-ho WASHINGTON, July 29 (Yonhap) -- The U.S. Federal Reserve on Wednesday held its benchmark interest rate steady in a 9-3 decision amid continuing concerns over the economic impact of renewed fighting in the Iran war and U.S. President Donald Trump's calls to lower borrowing costs.
During the two-day Federal Open Market Committee (FOMC) meeting, the central bank decided to leave the rate unchanged at the 3.5-3.75 percent range, marking the fifth consecutive pause.
The rate decision left the gap between the key interest rates of South Korea and the United States at up to 1 percentage point.
"Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East," the Fed said in a statement.
"Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little."
At the rate-setting meeting, the three participants -- Beth Hammack, Neel Kashkari and Lorie Logan -- preferred to raise the rate by a quarter percentage point, according to the Fed.
During a press availability earlier this week, Trump renewed his calls for the Fed to lower the rate, saying that the U.S. should have "the lowest interest rate in the world."
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Potential for future rate cuts if economic uncertainty deepens
Möglich · Innerhalb von Monaten
Offene Fragen
- Impact on global trade
- Future Fed policy under pressure from the White House
