In brief
The U.S. Federal Reserve held the federal funds rate steady at 3.75‑4.00% after a 10‑2 vote, signaling it will monitor economic data before any further moves. Fed Chair Kevin Warsh warned inflation remains too high and could spur future hikes. The decision leaves the interest‑rate gap to South Korea at up to one percentage point.
In Washington, the U.S. Federal Reserve on Wednesday chose to keep its key fed funds rate unchanged at 3.75‑4.00 percent, a decision made less than a week before the 2026 midterm elections. The move, approved by a 10‑2 vote of the 12-member Federal Open Market Committee, is part of a cautious strategy to observe economic conditions before any further adjustments.
Fed officials said continued growth in private spending and a resilient labor market weigh against a premature rate hike. “Economic activity is expanding at a strong pace. While uncertainty remains elevated owing, in part, to geopolitical developments, domestic spending has been resilient. Productivity growth is strong, and capital investment is robust. Job gains have kept pace with the workforce, and the unemployment rate has changed little,” the Committee expressed in its statement.
However, the Committee also noted that inflation has stayed elevated. In a statement, the Fed reiterated its commitment to maintaining ample reserves in the banking system and to achieving price stability, adding that “the accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation to the Committee’s 2 percent goal.”
Fed Chair Kevin Warsh, speaking at a press briefing, cautioned that inflation remains “too high” and highlighted rising energy costs as a concern. He emphasized that the Federal Reserve’s job is
