Fed Holds Rates Steady as Three Policymakers Dissent

The US Federal Reserve's (Fed) recent decision to keep interest rates steady at 3.5-3.75 percent is a closely watched development globally, especially for emerging economies like Turkey.

At its latest meeting, the Fed voted 9-to-3 to maintain rates unchanged, with three policymakers dissenting in favor of a 25-basis-point hike.

This decision has significant implications for Turkey, which is pursuing a policy of keeping the Turkish lira (TL) real effectively strong by suppressing the rate of exchange rate increase.

With the Fed's next policy decision scheduled for September 16 and Federal Reserve Chair Jerome Powell set to speak at the Jackson Hole meetings on August 27-29, market expectations are shifting towards potential rate hikes in 2026.