US Federal Reserve maintains interest rates
This Wednesday, the Fed decided to keep interest rates between 5.25 % and 5.5 %, although it does not rule out the possibility of further increases
The United States Federal Reserve decided this Wednesday to maintain interest rates in a range of 5.25 and 5.5 %, although it does not close the door to new increases.
The Federal Open Market Committee (FOMC) of the Fed issued a statement outlining the decision to maintain interest rates, although new statements from the president, Jerome Powell, are expected.
The country’s central bank will maintain its monetary policy without variations. As you may remember, the last increase was 25 basis points last July, in the midst of an internal economic crisis.
Without giving too many details on the subject, the Fed has indicated that it will remain vigilant about the “implications of incoming information for the economic outlook”, related to employment, inflation and international events, among others.
The organization “seeks to achieve maximum employment and inflation at a rate of 2 % in the long term. In support of these objectives, the Committee decided to maintain the target range for the federal funds rate between 5.25% and 5.50%,” according to the US central bank.
Taking into account the internal scenario, and if there are risks that affect the Committee’s objectives, it is foreseeable that a new interest rate adjustment will occur.
The Fed made the decision regarding interest rates after last week’s announcement of a 1.2 % expansion of the economy, which represents slightly above-expected growth in the third quarter.
The country also showed an annual growth rate of 4.9 %, according to data from the Bureau of Economic Statistics (BEA). Regarding the labor market, one of the key sectors in the Fed’s decision-making, job creation in September remained strong, with 336,000 net new positions. The rate remained stable at 3.8 %.
M.Pino
With information from agencies, national and international media
(Reference image source: United States Federal Reserve, dpa)
Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram
