The Federal Reserve has decided to keep rates at their current rate of 5.25% to 5.5%.
The central bank’s policy making Federal Open Market Committee stated that “economic activity has been expanding at a solid pace,” with strong job gains and low unemployment. And while the Fed insisted “inflation has eased over the past year but remains elevated,” it also claimed that it “remains highly attentive to inflation risks.”
“The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%,” said the Fed in a press statement. “In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to returning inflation to its 2% objective.”
The Fed added that it “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.” Today’s vote was unanimously approved by all Committee’s members, including Fed Chairman Jerome H. Powell.