The US Federal Reserve Holds Policy Rate Steady at 3.5%–3.75% amid Economic Uncertainty: PHDCCI
The US Federal Reserve’s decision to maintain the target range for the federal funds rate at 3.5%–3.75% reflects a calibrated approach in view of prevailing uncertainties and risks to the economic outlook, said Rajeev Juneja, President, PHD Chamber of Commerce and Industry (PHDCCI), in a press statement issued today.
City Air News
Jan 29, 2026 02:07
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New Delhi. January 29, 2026: The US Federal Reserve’s decision to maintain the target range for the federal funds rate at 3.5%–3.75% reflects a calibrated approach in view of prevailing uncertainties and risks to the economic outlook, said Rajeev Juneja, President, PHD Chamber of Commerce and Industry (PHDCCI), in a press statement issued today.
This policy stance comes against the backdrop of moderate economic growth during the first half of the year, slowing job gains, and persistently elevated inflation. The decision underscores the Federal Reserve’s cautious balancing of growth and inflation considerations while navigating a complex and evolving global economic environment, Juneja added.
From an India’s currency perspective, a steady US rate decision could result in erratic pressure on the Indian rupee, in line with global risk aversion strategy of the US. However, these pressures are expected to remain manageable, supported by India’s strong foreign exchange reserves and improving external balances, he said. For India, the decision provides stability given the global financial conditions, as the absence of rate hikes reduces the risk of sudden capital market volatility. This may keep foreign portfolio flows into emerging markets, including India, cautious said Dr. Ranjeet Mehta, CEO and SG, PHDCCI.
