The US Federal Reserve said on Wednesday it had unanimously decided to keep interest rates stable between 5.25 and 5.5 percent for the fourth time in a row.
The Jerome Powell-led Federal Open Market Committee (FOMC) said in a statement that it is unlikely to cut rates without “greater confidence” that inflation is moving “sustainably” toward its long-term target of two percent.
“The committee does not expect that it will be appropriate to lower the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent,” the FOMC statement said.
The central bank further added that “risks to achieving its employment and inflation goals are coming into better balance.” The central bank also reiterated its intention to continue shrinking its balance sheet by as much as $95 billion per month.
“In considering any adjustments to the target range for the Federal Funds Rate, the committee will carefully review the incoming data, the evolving outlook, and the balance of risks,” the FOMC statement said.
According to the statement, the committee believes that the risks to achieving employment and inflation targets are becoming better balanced. The economic outlook is uncertain and the Committee remains very alert to inflation risks.”
First print: February 1, 2024 | 12:46 pm IST