Washington:The U.S. Federal Reserve has decided to hold its benchmark interest rate steady, following a quarter percentage point increase last month. This decision was made during the two-day Federal Open Market Committee (FOMC) meeting, where the Fed emphasized that inflation remains a pressing concern that needs to be controlled.

According to Yonhap News Agency, the Fed voted 10-2 to maintain the interest rate at the 3.75-4.00 percent range, continuing its policy of maintaining ample reserves in the banking system. Last month's rate hike was the first since July 2023, with the Fed indicating the possibility of another increase later this year due to persistent inflation and high oil prices.

The decision aligns with market expectations, as projected by global bond investment manager Pacific Investment Management Co. (PIMCO), which anticipated the Fed would keep rates steady in October before potentially increasing them by another quarter-point in December. The Fed noted that economic activity is expanding strongly, with robust domestic spending, productivity growth, and capital investment. However, Fed Chair Kevin Warsh acknowledged that inflation remains "too high," and emphasized the need to prevent sector-specific price changes from spreading across the economy.

Warsh highlighted that the FOMC's discussions focused on price stability, stressing the importance of reducing inflation to achieve the 2 percent target. He also announced a change in the schedule of FOMC meetings, with rate-setting votes planned for seven out of eight meetings next year, and a reduction to six in 2028.

Additionally, Warsh expressed interest in the South Korean economy, particularly due to its role in the technology sector. He praised Bank of Korea Governor Shin Hyun-song, describing him as a talented individual and a good friend he has known for two decades.