[Breaking News] US Federal Reserve (Fed) Maintains Interest Rates at 5.25%-5.50%

The US Federal Open Market Committee (FOMC) left the base interest rate unchanged at 5.25% to 5.50%, as expected by most, and maintained the high level of 20 years for over 1 year.

Despite progress, the economic outlook remains “uncertain,” and the committee pressed for careful assessment of incoming data before making further interest rate adjustments. The committee also repeated that it does not intend to lower interest rates “until there is deep confidence that inflation will continue to move towards 2%.”

Furthermore, the committee added that it will continue to reduce holdings balances of Ministry of Finance securities, government agency bonds, and government agency mortgage-backed securities. The Federal Reserve concluded that “if risks that hinder the achievement of the committee's goals appear, the committee is prepared to adjust its monetary policy stance as appropriate.”