Fed keeps benchmark rate unchanged

ISTANBUL (AA) - The US Fed has kept its benchmark rates unchanged on Wednesday in an 11-1 vote, at 3.5-3.75% range, in line with market forecasts.

The Fed seeks to achieve maximum employment and inflation at the rate of 2% over the longer run, saying: "Uncertainty about the economic outlook remains elevated.

"The implications of developments in the Middle East for the U.S. economy are uncertain."

In December 2025, the Fed lowered the rate by 25 basis points but kept the rate constant in January meeting.

Although there had been expectations that the Fed would continue to cut interest rates prior to the attacks launched by the US and Israel against Iran, expectations that the Fed will keep rates steady have grown as a result of rising inflationary pressures following the war