(Kitco News) – The Federal Reserve announced on Wednesday that the Federal Open Market Committee (FOMC) has decided to maintain the target range for the federal funds rate at 3.50% to 3.75%, as expected by the market consensus.
“Available indicators suggest that economic activity has been expanding at a solid pace,” the Federal Reserve said in their statement. “Job gains have remained low, and the unemployment rate has shown some signs of stabilization. Inflation remains somewhat elevated.”
The central bank noted that “uncertainty about the economic outlook remains elevated,” and said that the FOMC “is attentive to the risks to both sides of its dual mandate.”
“In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” they added. “The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.”
Gold prices saw little reaction to the expected announcement, with spot gold last trading at $5,285.60 per ounce for a gain of 2.03% on the session.
“In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook,” the announcement said. “The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.”
10 FOMC members voted in favor of maintaining rates unchanged: Chair Jerome Powell, Vice Chair John Williams, Michael Barr; Michelle Bowman; Lisa Cook; Beth Hammack; Philip Jefferson; Neel Kashkari; Lorie Logan; and Anna Paulson. The two dissenters were Stephen Miran and Christopher Waller, both of whom argued for lowering the target range for the federal funds rate by 0.25%.
"The Fed paused today, but the pivot is still alive," Gina Bolvin, President of Bolvin Wealth Management Group told Kitco News. "By holding rates steady after three cuts, the Fed is signaling confidence—not hesitation. With two members voting for a cut, the path to easing remains open, just more patient and data-driven."
Bolvin said markets are reading this as a strategic pause, not a policy shift. "For investors, it’s a reminder to stay positioned in high-quality growth, income-generating assets, and sectors that benefit from a lower-rate environment on the horizon."
