The US Federal Reserve held interest rates steady on Wednesday, 28 October, keeping its benchmark rate in the 3.75 to 4.00 percent range. The Federal Open Market Committee voted 10–2 for the hold, with Governor Lisa Cook and Cleveland Fed President Beth Hammack dissenting in favour of an immediate 0.25 percentage point rise.
The Fed said economic activity was expanding strongly but inflation remained elevated, still about a percentage point above its 2 percent target, and that more information was needed before deciding the next move. Chair Kevin Warsh described a heated internal debate but said the economy was not running too hot, with consumer spending and investment holding up.
US stocks rose after the decision: the Dow gained 0.19 percent to 52,475.10, the S&P 500 rose 0.28 percent to 7,743.97 and the Nasdaq added 0.27 percent to 26,549.85. For Pakistan, the signal matters directly: the Fed’s stance shapes the dollar, oil prices and foreign investment flows that feed into domestic inflation and the rupee, and a December rise remains possible.
Sources: Reuters, Channel News Asia. Written in our own words for information only.