EUR/USD fluctuated but remained relatively stable within Wednesday’s pre-existing price action range after the Federal Reserve (Fed) announced it would keep interest rates in the 3.5-3.75% range, emphasizing its data-dependent approach. Monetary policy in the US is shaped by the Federal Reserve (Fed). Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions.