The US central bank will keep rates unchanged amid growing inflationary pressures [File: Elizabeth Frantz/Reuters]By Al Jazeera StaffPublished On 29 Apr 202629 Apr 2026
The United States Federal Reserve has held interest rates steady at 3.5 to 3.75 percent as inflation and pressure on the labour market during the US-Israel war on Iran weigh on the global economy.
The central bank announced its decision, which was largely in line with economists’ expectations, on Wednesday, wrapping up the last two-day policy meeting led by Chairman Jerome Powell.
CME FedWatch, which tracks the likelihood of monetary policy decisions, had a 100 percent expectation that the central bank would maintain rates.
Inflationary pressures on oil markets and a stagnant labour market have weighed on the central bank’s decision-making. The US Department of Labor is set to release its latest jobs report next week.
“Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook,” the central bank said in a statement.
“Job gains have remained low, on average, and the unemployment rate has been little changed in recent months. Inflation is elevated, in part reflecting the recent increase in global energy prices.”
The decision comes as Kevin Warsh, Trump’s replacement to succeed Powell, was confirmed by the Senate Banking Committee on Wednesday in a party-line vote, advancing his candidacy to the full Senate.
