The Radical Reading Room

The Federal Reserve kept its benchmark interest rate unchanged Wednesday, leaving the target range at 3.75% to 4%, according to the central bank’s latest decision. The hold followed a quarter-point increase last month, the first such increase in about three years.

The Fed said it was maintaining the range while policymakers considered additional information about the economy and inflation. It said that information would help determine a policy stance intended to return inflation to the central bank’s 2% goal.

In its assessment, the Fed described economic activity as expanding at a strong pace and domestic spending as resilient, while saying uncertainty remained partly because of geopolitical developments. The statement also said inflation remained elevated, a challenge identified by both accounts.

The hold leaves policymakers waiting for more data before choosing their next policy stance, rather than announcing another adjustment Wednesday. Both reports describe the recent quarter-point rise as occurring last month. The Fed framed the decision as a pause to evaluate incoming information amid a mix of strong activity and resilient spending, alongside elevated inflation and uncertainty. Neither account says the pause means inflation has returned to target; the Fed’s stated goal remains 2%.