The Federal Reserve held its policy rate at 3.50%\u20133.75%, but the 9\u20133 decision showed a stronger tilt towards tighter policy as three officials backed an immediate 25-basis-point rise. The FOMC said activity was expanding at a solid pace and the labour market was stable, while describing productivity growth and capital investment as strong; inflation, however, remained elevated, in part due to supply shocks including energy. Dissenters Beth Hammack, Neel Kashkari and Lorie Logan voted for higher rates.<\/p>\n\n
Chair Kevin Warsh reiterated that the inflation target remains 2% and said policy would not follow a preset path, with the Committee instead weighing inflation trends, whether supply shocks are spreading, and signals from financial markets ahead of the next decision in seven to eight weeks.<\/p>\n\n
The Fed\u2019s mandate is price stability and full employment, using its policy rate as the main tool, with moves affecting the US Dollar (USD). It holds eight meetings a year; the FOMC comprises twelve officials. Quantitative easing (QE) expands credit and tends to weaken the USD, while quantitative tightening (QT) reverses QE and is typically supportive for the currency.<\/p>\n\n\n\n