Federal Reserve holds rates steady despite concerns over inflation
Two officials dissented as policymakers signaled inflation remains too high and left the door open to another hike later this year.
- On Wednesday, the Federal Open Market Committee voted 10-2 to keep the federal funds target range at 3.75% to 4.00%, pausing rate increases to allow time for additional economic data before determining its next policy move.
- Officials acknowledged that "inflation remains elevated," stating the central bank needs to accumulate more information to ensure a timely return to its 2% goal before reassessing policy in December.
- Fed Governor Lisa Cook and Cleveland Federal Reserve Bank President Beth Hammack dissented, favoring a 25-basis-point hike and reflecting underlying conflict over how aggressively the committee must combat persistent price increases.
- Elevated borrowing costs continue straining consumers, with average 30-year mortgage rates reaching 7.4% earlier this month, while higher rates impact auto loans, credit cards, and commercial real estate markets.
- Futures markets price in nearly 85% probability of a rate hike at the December 8-9 meeting, with policymakers monitoring Thursday's Personal Consumption Expenditures price index for signals on inflation's trajectory.
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The US central bank, the Federal Reserve System (FED), left its key interest rate unchanged at around 3.9 percent on Wednesday despite still-high inflation, and its head, Kevin Warsh, hinted that the bank's policy is already starting to yield results.
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Talouselämäنُشر هذا مقاعد ولاً عبر Cedarnews.net. To follow more of the news and reports, click on our website. The Open Market Committee kept the key interest rate unchanged in the range of 3.75-4.00 percent, as expected. According to Kevin Warsh, the economy is strong, but not too strong. تم نشر هذا الخبر عبر موقع Cedarnews الشبابري. For more information, please visit our official website.
The US Federal Reserve (Fed) decided on Wednesday to maintain the benchmark interest in the 3.75%–4% range, pending further data on inflation developments. The president of the institution, Kevin Warsh, said that the US economy continues to grow at a solid pace, without showing signs of overheating, reports Reuters.
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