The Federal Reserve (Fed) decided to keep the policy interest rate unchanged at 4.25-4.50 percent. The decision was made with 11 votes in favor and 1 against.

In the Fed’s decision, it was reported that Christopher Waller supported keeping the policy interest rate stable but preferred to maintain the current pace of reduction in securities holdings. The statement indicated that the decision to keep the federal fund rate target range between 4.25-4.50 percent was made to support the bank’s objectives. Fed HALTED INTEREST RATE CUTS IN JANUARY Fed made its first interest rate cut in 4 years in September last year, reducing the policy rate by 50 basis points. After reducing the policy rate by 25 basis points in November and December last year, Fed took a break from interest rate cuts in January. In the US, inflation, after reaching its highest level since 1981 at 9 percent on an annual basis in June 2022, was recorded at 2.8 percent on an annual basis in February.