U.S. Federal Reserve keeps interest rates unchanged at 3.75–4 percent

Central banks must balance the need to support economic growth with the challenge of containing inflation. The U.S. Federal Reserve has opted to keep its benchmark interest rate unchanged less than a week before the 2026 midterm elections.

On Wednesday, the Federal Open Market Committee (FOMC) maintained its target range for the federal funds rate at 3.75 to 4 percent.

In its statement, the committee said economic activity was expanding at a strong pace. Domestic spending remained resilient, productivity growth was strong, and capital investment was robust. Job gains had kept pace with the workforce, while the unemployment rate had changed little.

However, inflation remained elevated. The committee said it needed to gather more information to determine the appropriate direction of monetary policy and ensure a timely return of inflation to its 2 percent target. The FOMC also reaffirmed its policy of maintaining ample reserves in the banking system.

Of the committee's 12 members, 10 voted to leave the rate unchanged, while two supported raising it.

According to CCTV+, the decision reflects the Federal Reserve's cautious approach to monetary policy amid resilient economic activity and continued inflationary pressure.