Top News

The US Fed kept its policy rate unchanged in the 3.5–3.75 percent range even as four of the 12 members dissented. While three members dissented against the Fed still keeping a bias towards lowering borrowing costs in the future, one member dissented in favour of cutting the policy rate by 25 basis points

The Federal Reserve, the United States central bank, decided to keep its policy rate unchanged in the 3.5–3.75 percent range even as four of the 12 members dissented.

While three members dissented against the Fed still keeping a bias towards lowering borrowing costs in the future, one member dissented in favour of cutting the policy rate by 25 basis points.

This was the most divided policy meeting of the Fed since 1992, reflecting the uncertainty brought to the economy due to the war in West Asia, which completed two months just a day before the meeting.

“Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook. The Committee is attentive to the risks to both sides of its dual mandate. In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 3-1/4 to 3-3/4 percent,” the Federal Open Market Committee said in a statement.