Fed holds interest rates steady at 3.75-4.00 pct amid elevated inflation
The US Federal Reserve on Wednesday kept its benchmark interest rate unchanged at 3.75 to 4 percent, pausing further monetary tightening as policymakers assessed incoming economic data amid persistently elevated inflation.
In a statement issued after its two-day policy meeting, the Federal Open Market Committee (FOMC) reaffirmed its commitment to achieving its dual mandate of maximum employment and price stability, while maintaining ample reserves in the banking system.
The Committee said economic activity continued to expand at a strong pace, supported by resilient domestic spending, robust productivity growth and sustained capital investment. However, it noted that economic uncertainty remained elevated, partly due to geopolitical developments.
The Fed said job gains had kept pace with workforce growth, while the national unemployment rate had changed little. At the same time, inflation remained elevated, underscoring the need for continued vigilance over price pressures.
The central bank said further economic data would help policymakers determine the appropriate course of monetary policy and support a timely return of inflation to its 2 percent target.
Source: KUNA
