The U.S. Federal Reserve held its benchmark lending rate steady for a fourth consecutive time during a monetary policy meeting on Wednesday, amid expectations that it would start lowering rates later this year.

After the two-day Federal Open Market Committee (FOMC) meeting, the central bank announced its decision to keep the rate between 5.25 and 5.50 percent. It has maintained the rate at the current level since its freeze in September.

The latest decision put the gap between the key rates of South Korea and the United States at up to 2 percentage points.

Reiterating its inflation target, the bank stressed, “The committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.”

In considering any adjustments to the target rate range, the committee will “carefully” assess incoming data, the evolving outlook and the balance of risks, the bank said in a statement.

Following the previous rate-setting mee
ting in December, Fed Chairman Jerome Powell said the policy rate was likely at or near its peak for the tightening cycle — remarks that indicated the Fed would pivot away from its rate hiking campaign launched in March 2022 to cool inflation.

Source: Yonhap News Agency