The Federal Reserve kept interest rates steady at 3.50%-3.75% in a 9-3 vote, triggering a sharp drop in the US Dollar.
The US Dollar (USD) fell sharply on Wednesday after the Federal Reserve left interest rates unchanged in a divided decision. The Federal Open Market Committee (FOMC) maintained the federal funds target range at 3.50%–3.75%, with three members dissenting in favor of a hike.
The decision follows a period of aggressive tightening, though recent economic data had suggested a potential pause. Markets had priced in a high probability of no change, but the split vote surprised some analysts.
Oil prices surged amid escalating tensions in the Middle East, adding to volatility in currency and commodity markets.