Fed holds key interest rate steady after last month's quarter-point hike

By Chang Dong-woo

WASHINGTON, Oct. 28 (Yonhap) -- The U.S. Federal Reserve on Wednesday held its benchmark interest rate steady, following the central bank's quarter percentage point hike last month.

During the two-day Federal Open Market Committee (FOMC) meeting, the Fed decided to maintain the rate at the 3.75-4.00 percent range.

Last month, the Fed raised its benchmark interest rate by a quarter percentage point in its first hike since July 2023, while signaling the possibility of another increase later this year amid persistent inflation and high oil prices.

The Fed's decision left the gap between the key interest rates of South Korea and the U.S. at up to 1 percentage point.

The decision was in line with overall market expectations.

Global bond investment manager Pacific Investment Management Co. (PIMCO) projected last week that the Fed would hold rates steady in its October meeting before delivering another quarter-point increase in December.

odissy@yna.co.kr
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