Washington: The U.S. Federal Reserve kept its benchmark interest rate unchanged Wednesday, less than a week after President Donald Trump said he would demand rate reductions. The decision was made following a two-day Federal Open Market Committee (FOMC) meeting, with the central bank announcing the rate would remain in the 4.25 to 4.50 percent range.

According to Yonhap News Agency, the decision to hold the rate steady comes after a recent series of rate cuts. Last month, the Fed reduced the rate by a quarter-percentage point, following a 25 basis-point cut in November and a 50-basis-point reduction in September. These adjustments were part of a broader strategy to manage economic growth and inflation.

Last month's FOMC members' new median economic projections indicated that the federal funds rate might be lowered to 3.9 percent by the end of the year. This projection suggests the possibility of two rate reductions within the year, highlighting the Fed's responsive approach to evolving economic conditions.