US Federal Reserve holds interest rates steady

While the unemployment rate has held steady at low levels, the Fed expressed concern over rising risks to both employment and inflation—its dual mandate. The Committee reaffirmed its commitment to achieving maximum employment and returning inflation to its long-run target of 2 per cent, the FOMC said in a statement.

The Fed will continue to reduce its balance sheet by paring holdings of Treasury securities and mortgage-backed assets. Officials signalled that future rate decisions will depend on incoming data and an evolving assessment of risks.

ALCHEMPro News Desk (KD)