Fed Holds Rates Steady as Growth Remains Solid and Inflation Stays Elevated

The Federal Reserve’s FOMC kept the federal funds rate at 3.50%–3.75%, maintaining ample reserves, as it notes solid economic activity despite geopolitical uncertainty; productivity and investment are strong, hiring is solid with unemployment little changed, while inflation remains above the 2% goal due to supply shocks including energy, and the Committee remains focused on price stability.