US Fed Keeps Interest Rate Steady Amid Economic Uncertainty
Decision Marks Fifth Consecutive Pause; Trump Renews Calls for Lower Rates
Quick Look
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.
AI-generated summary
Why It Matters
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."
What to Watch
AI outlook — possibilities, not facts
Potential for future rate cuts if economic uncertainty deepens
Possible · Within months
Open Questions
- Impact on global trade
- Future Fed policy under pressure from the White House
