US Fed maintains federal funds rate amid continued economic expansion

The Committee aims to achieve maximum employment and a 2 per cent inflation rate over the long term. They believe that the risks to achieving these goals have become more balanced over the past year. Despite this, the economic outlook remains uncertain, and the Committee is highly attentive to inflation risks, the Federal Open Market Committee (FOMC) said in a press release.

In considering future adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, evolving economic conditions, and risk assessments. They do not foresee reducing the target range until there is greater confidence that inflation is moving sustainably toward the 2 per cent target. Additionally, the Committee will continue to reduce its holdings of Treasury securities, agency debt, and agency mortgage-backed securities.

“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's assessments will take into account a wide range of information, including readings on labour market conditions, inflation pressures and inflation expectations, and financial and international developments,” the release added.

ALCHEMPro News Desk (KD)