The Federal Reserve held interest rates steady at 3.5%-3.75%, leaving its benchmark range untouched. Japan's central bank signaled the opposite path, with more rate hikes on the way.
The Fed's holding pattern
The Fed's decision keeps the federal funds rate in the 3.5%-3.75% range. Borrowing costs for consumers and businesses stay where they are. The central bank made no move in either direction.
Japan's tightening signal
Japan's central bank signaled it will keep raising rates. The signal points to further increases ahead. Japan is on a tightening path while the Fed holds.
A split in direction
The two central banks are now on different tracks. The Fed is holding steady. Japan is preparing to hike again. That divergence is the clearest feature of the current global rate picture.
