The US Federal Reserve maintained its benchmark interest rate at 3.5% to 3.75% during its first policy meeting of 2026, marking a strategic pause after three consecutive cuts in late 2025. The decision signals cautious optimism as policymakers assess global economic headwinds and inflationary trends.
Asian markets showed mixed reactions Thursday, with tech-heavy indices in Seoul and Taipei dipping 0.8% while Shanghai’s financial sector gained ground. Analysts suggest the pause allows breathing room for emerging Asian economies managing dollar-denominated debt.
Investors are now scrutinizing Fed Chair Jerome Powell’s remarks about “data-dependent flexibility,” interpreted by HSBC strategists as leaving room for potential mid-year adjustments. The Monetary Authority of Singapore is scheduled to review its policy stance next week, with regional central banks expected to align strategies.
