US Fed maintains interest rates at 5.25-5.5% amid inflation concerns

The US banking system remains robust, although tighter financial conditions are expected to impact economic activities, employment, and inflation levels, though the extent of these impacts is still unclear, the Federal Open Market Committee (FOMC) said in a statement.

In pursuit of long-term goals of maximum employment and a 2 per cent inflation rate, the Committee has decided to persist with its current monetary policy. Future policy adjustments will be informed by the cumulative effects of monetary tightening, the time lag of monetary policy implications, and ongoing economic and financial developments. Moreover, the reduction of treasury securities and agency debt holdings will proceed as previously planned.

“In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals,” the Committee said.

ALCHEMPro News Desk (KD)