The Fed's decision to keep its benchmark lending rate between 5.25 percent and 5.50 percent gives policymakers time to"assess additional information and its implications for monetary policy," the central bank said in a statement.
The US central bank added that any future decisions on policy firming would"take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments."Since peaking at more than seven percent in June last year, inflation as measured by the Fed's favored yardstick has slowed by more than half -- although it remains stuck firmly above three percent.
But despite its aggressive monetary tightening, the Fed noted that"economic activity expanded at a strong pace in the third quarter."The Fed's move is likely to raise expectations that it is done hiking interest rates and is moving into a prolonged pause.Despite a recent series of strong economic data, the Fed's rate decision has been made easier by a surge in yields on longer-term government bonds.
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: FinancialReview - 🏆 2. / 90 Read more »
Source: abcnews - 🏆 5. / 83 Read more »
Source: abcnews - 🏆 5. / 83 Read more »