Global equities rose sharply after the US Federal Reserve signaled that interest rates are likely to stay unchanged for now, reflecting a modestly softer inflation backdrop and continued resilience in consumer demand.

The market response was broad, with investors welcoming the prospect of a steadier policy path after months of uncertainty over the central bank’s next move. Lower inflation readings have eased pressure on policymakers, while household spending has remained strong enough to reduce fears of a near-term slowdown.

For traders, the message suggests the Fed is in no hurry to tighten again unless fresh data forces a change. That outlook helped support stocks across major markets, as investors moved to price in a more stable borrowing-cost environment.

Even so, analysts say the outlook remains data-dependent. If inflation stalls or growth weakens, the Fed could still face renewed pressure to adjust its stance later in the year.