12 Nov 2025, Wed

Us federal reserve keeps interest rates unchanged as inflation risk

Federal reserve unchanged interest rates: Amidst the global uncertainties made due to tariffs, some changes will be made in the benchmark interest rates by the American Central Bank. But no change was made in the major interest parties and kept at 4.25 percent. After the Federal Open Market Committee meeting, this decision was taken by the Federal Reserve. This step of the US central bank is in line with experts of experts.

No change in major interest rates in America

The statement from the Federal Committee said that the risks of high unemployment and high inflation have increased. The fluctuations in net exports have not affected any kind of economic activities. Therefore, Treasury Securities and Agency will continue to reduce their holdings of date and agency Mortgage Backed Securities.

Earlier in the month of March, the American Central Bank Federal Reserve had not made any changes in the interest rates. Also, during the meeting held in January, he was left the same. Earlier, interest rates of 40 basis points in September 2024 and 25 basis points were cut in November.

Increased danger of inflation and energy

As soon as the Ferder was announced not to cut the interest rates from the Ferrender Bank, there was a decline in the US market. In the S&P500, 0.5 percent went down, while the Nasdaq composite also slipped 1 percent. However, Dou Jones average saw an edge and it climbed .01 percent i.e. 27 points.

If we talk about India, then in April of 2025, the Reserve Bank of India has cut 25 basis points for the second consecutive time to repo rate to 6.0. Since then, many banks have announced a cut in borrowed interest rates.

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