On Wednesday, the Federal Reserve revealed that it would keep the benchmark interest rates unchanged as it keeps an eye on inflation and the labor market amidst growing economic uncertainties.
Currently, the federal funding rate is set between 4.25% and 4.5%, following three consecutive cuts made in prior meetings in January and March.
The Federal Open Market Committee (FOMC), responsible for directing the central bank’s monetary policy, stated in its announcement that confirmations regarding the economic outlook are increasing. They acknowledged monitoring risks surrounding their dual mandate, which might lead to higher unemployment rates alongside inflation.
The FOMC also noted that, while net exports have influenced the data lately, recent indicators imply that economic activity is still growing steadily. Unemployment has remained low over the past few months, and the labor market appears robust, although inflation continues to rise moderately.
This is a developing story. Please check back for updates.
