The US Federal Reserve maintains its key interest rate at a target range of 3.75-4.00%, aiming to gather more information before deciding on future policy moves to combat high inflation.
During its latest policy meeting, the US Federal Reserve kept its benchmark interest rate unchanged, maintaining a target range of 3.75 per cent to 4.00 per cent. The average effective rate remained around 3.9 per cent.
In a statement released after the meeting, the Fed indicated that inflation remains elevated and that holding off on an increase will allow the accumulation of more information to help determine its future policy moves. This decision follows the Fed's stance last month when it raised its benchmark rate for the first time in three years.
Two Federal Reserve officials, Lisa Cook and Beth Hammack, dissented from this decision, voting in favour of a quarter-point increase. The next moves of the Fed remain unclear, although officials had pencilled in another rate hike for this year.
Inflation, which rose to 3.7 per cent year-on-year in September, has been a concern for consumers facing higher costs for goods such as gas, groceries, and clothing. The Fed aims to gather more information before deciding on its future policy moves to bring inflation back to its target of 2 per cent.
The decision comes ahead of the midterm elections scheduled six days later, which have centered around concerns over cost of living and affordability.
Source:
Akashvani News
