Fed Holds Rates Steady After Minor Adjustment; Market Remains Undeterred

The U.S. Federal Reserve has opted for a cautious approach, adjusting interest rates by 25 basis points to 3.75% – 4%. This move is viewed as a reflection of the Fed’s ongoing effort to strike a balance between curbing inflation and mitigating signs of economic cooling. However, market reaction has been muted, with analysts pointing out that this adjustment was already factored into investor expectations. 25 basis point rate cut was anticipated by markets, and its impact on major indices like the S&P 500 and Nasdaq was minimal. Bond yields also held steady, indicating a lack of surprise regarding the decision.