Federal Reserve Maintains Steady Rates for Fifth Consecutive Meeting

The Federal Reserve held steady during its July monetary policy meeting on Wednesday afternoon, maintaining short-term interest rates for the fifth consecutive meeting this year.

In a 9-1 vote, the Federal Open Market Committee (FOMC) decided to keep the target range for the benchmark Federal Funds Rate unchanged at 0.25 to 0.50%. In December, the FOMC had ended a seven-year period of zero interest rates by increasing the Fed Funds Rate by 25 basis points, marking the first rate hike in nearly a decade.

In its July policy statement, the FOMC noted that near-term risks to the economic outlook have decreased, and economic activity has continued to expand at a moderate pace. Esther George, president of the Kansas City Fed, was the only member to dissent.

Following the announcement, one stock index reported a slight decline to 18,467.65, down 0.03% for the day, while another composite index fell by 0.28% to 2,157.50. Both indices had been relatively stable prior to the Fed’s statement. Additionally, the index measuring the strength of the U.S. dollar against a basket of six other currencies rose to 97.37, extending earlier gains. The currency exchange rate also remained steady at 1.0984.

Meanwhile, yields on a specific benchmark were largely unchanged at 1.528%, decreasing by three basis points for the day.

The FOMC is set to convene next on September 20-21.