The Fed Holds Interest Rates at 3.75%, Market Focuses on Powell's Signal
The Fed maintained its benchmark interest rate at 3.75%, indicating the US central bank is in "hold mode" while assessing the direction of the economy.
This decision is usually made because they still believe inflation is not yet completely safe, while also avoiding "slamming on the brakes" too hard, causing the economy to slow down. So, the Fed is seemingly saying: we're not ready to lower interest rates, but there's no need to raise them either—we'll monitor the data first.
For the market, the interest rate remaining at 3.75% signals that borrowing costs are still relatively high, so the dollar tends to remain strong, yields can hold up, and interest-sensitive assets (growth stocks/gold) tend to move cautiously.
Source: Newsmaker.id
