FOMC left interest rates unchanged at 4.25–4.50% in a unanimous decision, as widely expected. However, the accompanying statement provided little clarity on the duration of the pause.
Fed simply reiterated that the timing and extent of future rate cuts will depend on incoming economic data, the evolving outlook, and the balance of risks..
The statement highlighted that the US economy continues to “expand at a solid pace,” with the unemployment rate remaining stable at low levels and labor market conditions still “solid.” Inflation remains “somewhat elevated.”
Additionally, Fed emphasized that it remains “attentive to the risks to both sides of its dual mandate.”
