As expected, the US Federal Reserve Board left its key Fed Funds rate unchanged in a range of 4.25% to 4.50%. Although the Fed sees economic growth in the US receding, it also sees inflation rising, but probably on a transitory basis. Fed Chairman Powell nonetheless made it clear that the unusually high uncertainty surrounding these outcomes and their magnitude drove the Fed to decide on unchanged rates. This has created a marker for the South African Reserve Bank to follow suit in the face of uncertainty despite yesterday’s favourable inflation numbers.