Washington:The US Federal Reserve has decided to keep its benchmark interest rate steady within the range of 3.75% to 4%. This decision was made on Wednesday as policymakers considered the balance between high inflation and strong economic growth.

According to Anadolu Agency – English, the Federal Open Market Committee (FOMC) voted 10-2 in favor of holding the rate steady. This move supports the central bank's dual mandate of achieving maximum employment and stable prices. However, policymakers Lisa Cook and Beth Hammack dissented, advocating for a 25-basis-point increase in the target range for the federal funds rate during the meeting.

The FOMC acknowledged that inflation remains elevated and reiterated its commitment to ensuring price stability. The committee emphasized that further information would guide its policy decisions to achieve the 2% inflation target. The central bank also highlighted the robust expansion of US economic activity, driven by strong domestic spending, productivity growth, and capital investment, despite uncertainties partly due to geopolitical factors.

Additionally, the Fed noted that job gains are keeping pace with the workforce, and the unemployment rate has shown little change. The institution continues to pursue a policy of maintaining ample reserves within the banking system.