The Federal Reserve announced on Wednesday that it is maintaining the target range for the federal funds rate at 5.25 percent, marking the third consecutive meeting with no change. In its statement, the Fed emphasized that further monetary tightening is unnecessary but highlighted that any rate cuts will be contingent on inflation falling below 2.4 percent on a year‑over‑year basis. Core CPI rose 0.2 percent month‑over‑month, keeping annual inflation at 2.6 percent, just above the Fed’s comfort zone. The decision was largely anticipated, yet the explicit threshold for cuts surprised markets, prompting a modest rally in the US dollar index and a sell‑off in rate‑sensitive equities such as utilities and real‑estate investment trusts. Major banks like JPMorgan (JPM) and Bank of America (BAC) saw modest gains as higher‑for‑long rates support net interest margins. Conversely, REITs such as Public Storage (PSA) fell 1.8 percent, reflecting concerns over borrowing costs. Analysts expect the Fed’s guidance to keep volatility low in bond markets while maintaining a cautious tone for equity investors.