US Federal Reserve holds interest rates steady as stubborn inflation puts future rate hikes in focus

The US Federal Reserve held interest rates steady, in line with expectations, although two FOMC members preferred a 25-basis-point increase. Inflation measures remained at or above 3% versus the Fed's 2% target, while crude oil reached around $114 per barrel, nearly 20% higher since early September. Some economists expect three additional 25-basis-point rate increases, with market pricing indicating quarterly hikes through June 2027.