Fed Holds Rates Steady Amid Inflation Concerns

The US Federal Reserve has decided to maintain the target range for the federal funds rate at 3.5 to 3.75 per cent, keeping a key monetary-policy marker unchanged.

This decision was made by the Federal Open Market Committee (FOMC) and was approved with a 9-3 vote in its July 29 statement.

The FOMC noted that economic activity is expanding at a solid pace despite elevated uncertainty, partly due to the conflict in the Middle East. Productivity growth and capital investment are strong, job gains have kept pace with the workforce, and the unemployment rate has changed little.

Inflation remains elevated relative to the committee's 2 per cent goal, partly reflecting supply shocks that have driven price increases in certain sectors, including energy. The FOMC said it will deliver price stability.