US Federal Reserve keeps rate steady at 4.25–4.50%, signals caution

19 Jun '25

1 min read

US Federal Reserve keeps rate steady at 4.25–4.50%, signals caution

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US Fed has kept the federal funds rate steady at 4.25 to 4.50 per cent, noting continued economic growth and a strong labour market.
While inflation remains above the target, uncertainty in the outlook has eased.
The Fed reaffirmed its commitment to achieving maximum employment and 2 per cent inflation and will continue reducing its balance sheet.

US Federal Reserve (Fed) has decided to maintain the target range for the federal funds rate at 4.25 to 4.50 per cent, citing continued economic expansion and a resilient labour market.

While recent swings in net exports have influenced data, indicators point to steady growth. Inflation remains above the Fed’s two per cent goal, though uncertainty around the economic outlook has eased somewhat.

The Federal Open Market Committee (FOMC) reiterated its commitment to achieving maximum employment and price stability. It will continue to monitor incoming data, inflation expectations, and global developments to guide future policy moves. The Fed also affirmed ongoing reductions in its holdings of Treasury and mortgage-backed securities, signalling a cautious but steady approach to policy normalisation.

Officials emphasised readiness to adjust policy if risks to growth or inflation emerge, reaffirming a data-dependent stance moving forward, the FOMC said in a statement.

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