The U.S. Central Bank, the Federal Reserve (Fed), left its benchmark interest rate unchanged on the 17th (local time) at the first Federal Open Market Committee (FOMC) meeting since new Chair Kevin Warsh took office.
After concluding the regular FOMC meeting that day, the Fed said it unanimously decided to keep the benchmark rate at 3.50% to 3.75% annually, the same as before. As a result, the interest rate gap with Korea (2.50% annually) remains unchanged at 1.25 percentage points at the upper end.
This is the fourth time the Fed has held the benchmark rate steady. After cutting the rate by 0.25 percentage point in September, October and December last year, the Fed kept rates unchanged in January, March and April this year, and again this time.
In a statement, the Fed said, "Inflation remains above the Committee's 2% target, partly reflecting supply shocks driven by price increases in some areas such as energy," and added, "The Committee will work to achieve price stability."
This FOMC was the first meeting since Warsh took office last month. With U.S. President Donald Trump continuing to pressure for rate cuts, markets are focused on what currency policy the Fed under Warsh's leadership will pursue.