The US central bank (Fed) has decided to keep interest rates at their current range 5.25% and 5.5% and as expected, he said he would wait for new macroeconomic data before deciding on possible increases by the end of the year.
The president of the central bank, Jerome Powell, did not deviate from the position presented so far: monetary policy will be adjusted accordingly, depending on whether risks will arise that could hinder the goal of setting inflation at 2%.
“We really want to see the evidence assuring that we have reached the appropriate level (of increase). (…) We have seen progress and we appreciate it. But, you know, we need to see more progress before we’re willing to conclude increases,” he said at a news conference.
A few minutes earlier, the Federal Open Market Committee (FOMC) andThe Fed’s body in charge of deciding whether or not to raise ratesannounced that it was maintaining them at the current rate.
The Fed said in its statement that it will continue to evaluate additional information and its implications for monetary policy.
In this evaluation, he added, a wide range of information will be taken into account, from the state of the labor market, inflationary pressures, expectations in this regard, and financial and international events that may have an impact.
According to its findings, the US banking system is “strong and resilient”, and tighter credit conditions for households and businesses are likely to affect economic activity, employment and inflation.
“The extent of these effects remains uncertain. The committee remains very attentive to inflation risks,” said the note, which highlighted the desire to target inflation at 2%.
In all your meetings from the beginning a series of increases in March 2022, FOMC members have decided to raise them, except last June, when they agreed to a pause. In July, they increased them again.
On unemployment, another key piece of data the Fed analyzes to decide on possible hikes, job creation has slowed in recent months, adding just 187,000 net jobs in August (below the 12-month average of 271,000).
Although the rate rose by three tenths to 3.8%, the number is still solid, in the context of the weak growth of the US economy, which grew by 0.5% in the second quarter compared to the previous quarter, according to the latest official data.
The next Fed meetings on this issue will be held October 31 and November 1 and December 12 and 13.
I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.
I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.
