Fed Keeps Interest Rates the Same

• FOMC voted 8-4 to leave rates unchanged, with the Fed Funds Target Rate at 3.5%-3.75%.
• Inflation is labeled 'elevated' due to global energy prices and Middle East developments adding uncertainty.
• Economy is expanding at a solid pace, with stable job gains and continued consumer spending, despite pressures on small businesses.

The FOMC decided to keep interest rates unchanged, with an 8-4 vote indicating significant internal dissent. While economic activity is expanding at a solid pace and job gains are stable, inflation remains elevated, partly due to rising global energy prices and geopolitical uncertainty in the Middle East. The market anticipates no further rate cuts this year, with only one priced in by the end of 2027.