US Fed keeps interest rate constant, as expected

The US Federal Reserve kept the benchmark policy rate at 4.25%-4.5% on Wednesday, as widely expected.

The Fed said in a statement that recent indicators suggest economic activity has continued to expand at a solid pace and the unemployment rate has stabilized at a low level.

But "inflation remains somewhat elevated," it said.

The bank stressed that it is strongly committed to supporting maximum employment and returning inflation to its 2% objective.

The bank, keeping the rate at the historically high level of 5.5% from July 2023 to September 2024, gradually lowered it during the last three meetings to 4.5%.