The US Federal Reserve leaves the policy interest rate unchanged at 5.5 percent. Why the EU wants to take action against Chinese electric cars and risks a trade war

The US Federal Reserve will not raise interest rates in September. She leaves the main interest rate unchanged between 5.25 and 5.50 percent, as the Federal Reserve (Fed) announced on Wednesday.

The US Federal Reserve Bank expects higher economic growth this year than expected three months ago. The gross domestic product (GDP) of the world’s largest economy is expected to grow by 2.1 percent, as the Fed announced in Washington on Wednesday.

That would be 1.1 percentage points more than predicted in June. The Fed predicts growth of 1.5 percent for the coming year.

The Fed also expects slightly higher inflation this year than expected three months ago. Inflation is expected to average 3.3 percent in 2023, up 0.1 percentage point from the previous forecast in June, central bank data showed on Wednesday. The Fed expects inflation of 2.5 percent by 2024.

Core inflation, without taking food and energy prices into account, is expected to be 3.7 percent this year and 2.6 percent next year. The Fed is committed to the goals of price stability and full employment and targets inflation of 2 percent. (awp/sda/dpa)