Fed Keeps Interest Rates Steady Amid Ongoing Middle East Uncertainty

The US Federal Reserve's Federal Open Market Committee (FOMC) has kept interest rates steady at 3.5 to 3.75% in its latest decision, maintaining a key monetary policy marker unchanged for textile exporters and apparel manufacturers.

The committee voted 9-3 in favor of the decision, which was announced on July 29. The FOMC said economic activity is expanding at a solid pace despite elevated uncertainty caused by 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, according to the committee's statement.

The FOMC also noted that inflation remains elevated relative to its 2% goal, partly due to supply shocks in sectors such as energy.