Fed Keeps Interest Rates Unchanged Amid Elevated Uncertainty

The US Federal Reserve maintained its interest rates at 3.5%-3.75% in its latest decision, as reported by Report.az citing the Federal Reserve's Federal Open Market Committee (FOMC) statement.

The committee's decision to keep rates unchanged supports the Fed's dual mandate, according to the statement. The FOMC also emphasized maintaining ample reserves in the banking system.

Economic activity is expanding at a solid pace despite elevated uncertainty partly linked to the conflict in the Middle East, the Fed stated. Productivity growth and capital investment remain strong, while job gains have kept pace with the workforce and the unemployment rate has changed little.

The FOMC noted that inflation remains elevated relative to its 2% goal, partly due to supply shocks driving price increases in certain sectors, including energy.