Fed leaves interest rates unchanged despite inflation in the US

The United States Federal Reserve is set to hold interest rates steady in its final monetary policy decision before the US midterm elections. The central bank will maintain rates at 3.75-4 percent, following a 10-2 vote, in line with expectations. CME FedWatch, which tracks the likelihood of monetary policy decisions, indicated that there was more than a 90 percent chance rates would remain unchanged. “Economic activity is expanding at a strong pace,” the Fed said in its press release announcing the decision on Wednesday. “While uncertainty remains elevated owing, in part, to geopolitical developments, domestic spending has been resilient. Productivity growth is strong, and capital investment is robust.