Published by Global Banking & Finance Review®
Posted on May 7, 2025
2 min readLast updated: January 24, 2026
Add as preferred source on GoogleThe US dollar gained strength against major currencies after the Fed maintained interest rates, citing inflation and unemployment risks.
By Chibuike Oguh
NEW YORK (Reuters) -The U.S. dollar remained slightly stronger against major currencies including the yen and the euro on Wednesday after the Federal Reserve left interest rates unchanged, in line with market expectations.
The Fed kept its benchmark interest rate steady in the 4.25%-4.50% range, but said that the risks of higher inflation and unemployment had risen and that the U.S. economic outlook remains uncertain.
"They were a little more hawkish than a lot of the market expected and they didn't really change or water down any of the views on inflation being above average or the jobs market selling at a low level," said Marvin Loh, senior global market strategist at State Street in Boston.
"I still think we're in an extended hold period until data tells them that they need to do something and/or we get a lot more trade clarity," Loh added.
The greenback was up 0.55% versus the yen at 143.190, breaking a three-day falling streak, with Japanese markets reopening after a two-day holiday.
(Reporting by Chibuike Oguh in New York, Stefano Rebaudo, additional reporting by Rocky Swift; Editing by Bernadette Baum, Ros Russell and Deepa Babington)
The Federal Reserve kept its benchmark interest rate steady in the 4.25%-4.50% range.
The greenback was up 0.55% versus the yen at 143.190, breaking a three-day falling streak.
The Fed noted that the risks of higher inflation and unemployment have risen, and the U.S. economic outlook remains uncertain.
The Fed was perceived as more hawkish than expected, maintaining views on inflation being above average.
Analysts believe that the Fed will remain in an extended hold period until new data indicates a need for action or there is more clarity in trade.
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