US Federal Reserve Stands Pat on Interest Rates

The US Federal Reserve has decided to keep its benchmark interest rate unchanged at 3.50% to 3.75%. This decision was made by a vote of nine members out of 12 in the Federal Open Market Committee (FOMC). Three members dissented, favoring a 25 basis points increase in interest rates.

The Federal Reserve's statement notes that inflation remains relatively high compared to its 2% target. This is attributed to supply shocks in certain sectors, including energy. Additionally, the unemployment rate has remained stable.

In response to this decision, US President Donald Trump had called on the Federal Reserve to lower interest rates, stating that the United States should have the lowest interest rates in the world.