Fed Holds Key Interest Rate Steady... Stock Market Rally Expands (Comprehensive)

[Asia Economy New York=Correspondent Baek Jong-min] The U.S. central bank Federal Reserve (Fed) on the 29th (local time) kept the benchmark interest rate at 1.50~1.75%, marking the second consecutive rate hold following three rate cuts last year.

After holding the Federal Open Market Committee (FOMC) regular meeting, a two-day monetary policy meeting starting on the 28th, the Fed announced in a statement that it decided to maintain the benchmark interest rate at 1.50~1.75%.

The Fed's statement on the day was largely similar to the one released after the December meeting, where it decided to halt three consecutive rate cuts and hold rates steady. It cited low inflationary pressures, favorable economic conditions, and labor market factors as reasons for seeing no need to change rates. There was no mention of potential future rate changes, suggesting a policy of holding rates steady for the time being.

In last month's FOMC regular meeting statement, the Fed removed the phrase "uncertainties about the outlook remain" and unanimously decided to hold rates steady.

Following the Fed's announcement of the benchmark rate hold, the Dow Jones Industrial Average on the New York Stock Exchange has been extending its gains.

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