Fed Holds at 3.75% for Fourth Meeting, Market Weighs Peak Rates

The Federal Reserve held its benchmark rate steady for the fourth straight meeting, keeping the federal funds rate at 3.50% to 3.75%. The vote was 12-0.

The decision extends what is already the longest pause in a tightening cycle since the 2006-2007 stretch. It also keeps borrowing costs at levels last seen before the global financial crisis, a fact that continues to shape risk appetite across asset classes.

For bond markets, the hold reinforces the narrative around higher-for-longer rates. The short end of the curve remains anchored to the fed funds rate, while longer-dated yields have stayed elevated as traders push back expectations for the first cut. The lack of a clear dovish signal in the accompanying statement left the yield curve relatively flat, a structure that typically signals uncertainty about the growth outlook.

The dollar has drawn support from the rate differential. With the Fed on hold and other major central banks either cutting or signaling cuts, the dollar index has gained ground. That pressure ripples through commodity markets. Gold, which pays no income, has faced headwinds as the opportunity cost of holding it rises with yields. The gold profile shows the metal trading in a narrow range, unable to break higher despite geopolitical noise.