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The Federal Reserve kept its benchmark interest rate unchanged and claimed to have made “additional progress” in fighting inflation.
(you might be interested: Republic Bank cuts interest rate by 50 basis points to 10.75%).
The Fed announced in a statement that its governors voted unanimously to keep interest rates between 5.25% and 5.50%, adding that ‘Aware of the risks’ Inflation and employment levels in the United States.
After a small pickup in inflation at the start of the year, the latest data suggest the Fed is now on track to return its price index to its long-term target of 2%.
(We also recommend: Fitch maintains Colombia’s credit rating at BB+, outlook stable).
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Its favorite inflation measure slowed to an annual rate of 2.5% last month. At the same time, economic growth remains strong and the labor market remains balanced.
“In recent months, the Committee has made some further progress toward its 2 percent inflation objective,” The Fed assured the Fed.
The decision marked a slight change in tone from June, when the central bank noted that “modest additional progress” had been made.
(Apart from: The unemployment rate in June was 10.3%, marking the ninth consecutive month of double-digit unemployment.).
“The committee judges that the risks to achieving its employment and inflation goals continue to move toward better balance,” The Fed said, adding “Focus on two risks”.
Federal Reserve Chairman Jerome Powell is due to speak to reporters later on Wednesday, and analysts expect him to hint at the possibility of a rate cut at the next Fed meeting in September.
AFP
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