Fed voted to hold interest rates between ___% and __%.

• A. 3.25% and 3.5%
• B. 3.5% and 3.75%
• C. 3.75% and 4.0%
• D. 4.0% and 4.25%

Answer: (B)

The main idea here is how the Fed communicates its policy stance through the target range for the federal funds rate and what it means to hold that range steady. When the Fed says it will hold rates within a certain range, it’s saying there is no change to that target from the previous meeting. The correct range is the one that keeps policy in the same band, meaning no hike and no cut. Viewing it in context, staying in the mid-3% area signals that inflation and growth are balanced enough to avoid adjusting rates right now. Other options would imply a different stance: a lower range would mean easing policy, while a higher range would indicate tightening.