The US Federal Reserve (Fed) kept interest rates unchanged in its policy decision on September 18, despite growing concerns over a global economic slowdown and trade tensions. Experts believe that the Fed may have waited too long to cut rates, as the economic conditions warranted a rate cut earlier in the year. The Fed’s decision came as a surprise to many, as markets had priced in a 25 basis point rate cut. The Fed’s decision was based on a strong labor market and inflation near its 2% target. However, some experts argue that the strong labor market data is not a reliable indicator of the overall economic health, as wage growth has slowed down in recent months. The Fed’s decision was also criticized for being out of step with other central banks, such as the European Central Bank and the Bank of Japan, which have already cut rates. The lack of coordinated action among central banks could lead to currency volatility and further economic uncertainty.
