Fed Holds Rates Amid Inflation Surge as ASX Rises and Wall Street Advances

The Federal Reserve announced it is keeping its benchmark interest rate unchanged, even as inflation has surged. The decision was widely expected and comes as the central bank says it will wait until after next week’s U.S. mid‑term elections and further data before considering any change.

The news lifted Australian equities, with the ASX index moving higher, and gave a boost to U.S. markets, where Wall Street advanced on the same day.

Analysts note the Fed is opting for a “hold‑and‑see” approach, preferring fine‑tuning over tightening for now. Some caution that delaying action until after the elections could leave inflation unchecked for longer.

Market participants are likely to keep watching data releases and election developments, with many saying they will “wait for the next data point” before adjusting their strategies.