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Eye of Dubai
Business & Money | Thursday 2 November, 2023 9:28 am |

Fed holds rates for 2nd consecutive time

The Federal Reserve left today, Nov. 1, kept interest rates unchanged at their highest level since 22 years, as widely expected for the second straight time. 




In its two-day meeting, the Federal Open Market Committee (FOMC) maintained policy rates at the current range of 5.25%-5.50%. 




In its statement, FOMC said recent indicators suggest that economic activity expanded at a strong pace in the third quarter. Job gains have moderated since earlier in the year but remain strong, and the unemployment rate has remained low. Inflation remains elevated. 




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




This marks the third time at which the Fed has not raised its federal funds, as rates were held in June and September. The US central bank has started raising policy rates since March 16, 2022 to curb inflation.




Markets will be listening closely to Fed Chair Jerome Powell's press conference later today. Policymakers are expected to meet again in December 2023.






Source ; Argaam


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Fed maintains rates, sees three-time cut in 2024
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