US Fed policy decision: Interest rate steady at 5.25-5.5% for the eighth consecutive meeting, hints rate cut in September
"In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 per cent," the Fed announced on Wednesday.
The Federal Reserve, in its latest meeting, decided to keep the federal funds rate unchanged at 5.25 per cent to 5.5 per cent for the eighth time. In its statement, the Fed observed that job gains in the U.S. economy have moderated, while the unemployment rate has increased slightly but remains low.
"In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 per cent," the Fed announced on Wednesday.
The Fed also noted that recent data indicates economic activity in the U.S. has continued to expand at a solid pace. The committee reaffirmed its commitment to achieving maximum employment and a long-term inflation rate of 2 per cent. It believes that the risks to reaching these goals are becoming more balanced. However, the economic outlook remains uncertain, and the committee is vigilant about the risks to both sides of its dual mandate.
Looking ahead, the committee emphasized that it will carefully assess incoming data, evolving economic conditions, and the balance of risks.
The Fed stated, "The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 per cent."
Additionally, the Fed added it will continue to reduce its holdings of treasury securities, agency debt, and agency mortgage-backed securities.
The Fed reiterated its commitment to returning inflation to its 2 per cent objective. The committee added it will keep monitoring a wide range of information, including labour market conditions, inflation pressures and expectations, and financial and international developments, to determine the appropriate stance of monetary policy.
"The Committee's assessments will take into account a wide range of information, including readings on labour market conditions, inflation pressures and inflation expectations, and financial and international developments," said Fed.
For all other news related to business, politics, tech and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
10:06 AM IST