US Federal Reserve announces interest rate decision

The US Federal Reserve (Fed) has kept the policy rate unchanged in the 3.5-3.75 percent range, in line with expectations.

In the statement released by the Fed, it was noted that the decision to keep the policy rate steady was taken with a 9 to 3 vote.

Despite all the insistence from US President Trump due to the major impacts of the US-Iran war, the policy rate was not cut. The US Federal Reserve (Fed) kept the interest rate steady.

CALL FOR INTEREST RATE HIKE AGAINST INFLATION

Cleveland Fed President Beth Hammack, Dallas Fed President Lorie Logan, and Minneapolis Fed President Neel Kashkari requested a 25 basis point increase in interest rates to combat inflation. The fact that three members voted against the majority in the same meeting was evaluated as a rare divergence in Fed decisions.

Although annual consumer inflation in the US fell to 3.5 percent in June, it continued to remain above the Fed's 2 percent long-term target. It is projected that inflation could accelerate again in the coming period due to the war in Iran driving up oil, energy, and fertilizer prices.