The US Federal Reserve (Fed) decided to keep the policy interest rate constant at its June 2024 meeting. This decision was in line with the expectations of many analysts and market players. By maintaining the interest rate at its current level, the Fed preferred to monitor the downward trend of inflation and the general condition of the economy.

In the statement made after the meeting, Fed officials emphasized that economic growth must be sustainable and the employment market must remain strong. It was stated that inflation is above the targeted 2% level, but some positive signals have been received recently. For this reason, it was stated that the Fed adopted a cautious approach and will act data-oriented regarding future interest rate increases.

It was observed that global economic conditions and trade relations were also effective in the Fed's decision. In particular, the decrease in trade tensions between the USA and China and the signs of recovery in European economies paved the way for the Fed to implement a wait-and-see policy instead of increasing interest rates.

After this decision of the Fed, it is expected that the demand for risky assets will increase and a positive atmosphere will be experienced in the stock markets. Additionally, the fixed interest rate decision could support emerging market currencies without causing a large fluctuation in the value of the dollar.

As a result, the Fed's June interest rate decision is considered as a cautious step towards reducing uncertainties in the economy. In the coming months, inflation and economic growth data will play a key role in shaping the Fed's policy.