Fed Holds Interest Rates Steady Amid Global Tensions

The Federal Reserve's Monetary Policy Committee (FOMC) is expected to keep interest rates unchanged at 3.50-3.75 per cent during its July meeting, in line with market expectations and available information on the central bankers' intentions.

The 'dots', or forecasts by individual governors, showed a median of 3.75 per cent in June, compared to 3.25-3.50 per cent in March, December, and September 2025.

Tensions in the Middle East are escalating, but long-term inflation expectations do not yet indicate any significant shifts that might prompt the Committee to adopt a tighter stance.