U.S. Federal Reserve, Bank of Canada keep key interest rates unchanged amid elevated inflation concerns
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- Federal Reserve held its policy rate steady at 3.5‑3.75% after an 8‑4 vote, the most divided since 1992, citing elevated inflation from higher global energy prices.
- Beth Hammack and two other Fed presidents, Neel Kashkari and Lorie Logan, voted against the easing bias, showing internal opposition to cuts.
- Iran’s closure of the Strait of Hormuz and related Middle‑East tensions pushed oil above $100 a barrel, feeding the Fed’s inflation concerns.
- Bank of Canada will meet on June 10 to decide its next policy rate, while the Bank of England and European Central Bank are set to keep rates steady on Thursday.
- Statistics Canada will publish February GDP and a March flash estimate Thursday, giving early insight into Canada’s growth amid global rate uncertainty.
Why it matters: U.S. borrowers face unchanged mortgage rates at 3.5‑3.75% while the Fed’s hold sustains higher borrowing costs, limiting corporate investment and keeping the dollar strong and pressuring homebuyers.
