US Fed keeps benchmark interest rates unchanged at 5.25-5.50%

The Fed had raised its policy rate by 525 basis points since March last year in 11 consecutive rises to the current range.

It will also continue reducing its holdings of treasury securities and agency debt and agency mortgage-backed securities, as mentioned in its earlier plans.

Recent indicators suggest that US economic activity has been expanding at a solid pace and job gains remain strong despite slowing in recent months, the Fed said.

The unemployment rate has remained low and inflation remains elevated, Fed said in its FOMC statement.

The banking system is sound and resilient. Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring and inflation. The extent of these effects remains uncertain and the committee remains highly attentive to inflation risks.

ALCHEMPro News Desk (DS)