Fed holds key interest rate steady as economic view improves

• The Fed paused interest rate cuts, keeping the federal funds rate steady at 3.5%-3.75%.
• The economic outlook was upgraded, with the Fed now describing economic expansion at a 'solid pace' (previously 'moderate pace') and noting 'stabilization' in unemployment (previously 'edged up').
• Language regarding 'downside risks to employment' and a 'shift in the balance of risks' towards employment downside was removed from the statement.

The Federal Reserve has paused its series of interest rate cuts, maintaining the key rate at 3.5%-3.75% after three consecutive reductions. This decision reflects an improved economic outlook, with the Fed upgrading its assessment of economic expansion and job market stability, while removing previous language indicating downside risks.