The US Federal Reserve's Federal Open Market Committee (FOMC) kept the target range for the federal funds rate at 3.75% to 4% on 28 October, by 10 votes to 2. Lisa Cook and Beth Hammack voted against, preferring a 0.25 point increase. The statement says economic activity is expanding at a strong pace, unemployment has changed little and inflation remains elevated. The Fed kept the interest rate on bank reserves at 3.90%, while Chair Kevin Warsh announced that in 2027 one of the eight meetings will be devoted solely to strategy.

What it means: The decision was expected, but the two votes for an increase show that part of the Fed is worried US inflation is not falling fast enough. The rate stays at the level reached after September's increase. For Greek businesses the effect is mainly indirect. US rates influence the euro-dollar exchange rate, and therefore the cost of imports priced in dollars, such as fuel, raw materials and technology equipment, and the competitiveness of Greek exports to the United States. Companies with loans or obligations in dollars see financing costs stay high. For borrowing in euros, the European Central Bank's decision, due this afternoon, matters more directly, as it drives the Euribor rate on which most business and mortgage loans in Greece are based. The change to the Fed's meeting schedule from 2027 means fewer opportunities to change rates during the year, which businesses with dollar exposure should keep in mind when planning their financing.

Notice: For information only. Not investment advice or a recommendation to buy or sell.

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