Charting the Global Economy: Fed Holds While ECB Lowers Rates

Federal Reserve officials are treading cautiously on interest rates against a backdrop of sturdy US economic activity and a healthy labor market as officials await policy moves from the Trump administration.

During a week full of central bank policy decisions around the globe, Fed officials kept interest rates in a range of 4.25% to 4.5%, while their European counterparts moved forward with another reduction. With the region’s economy stalling and a 2% inflation target within reach, the European Central Bank lowered borrowing costs for a fifth time since June.