The Federal Reserve kept interest rates steady on Wednesday. As the slow pace of inflation coupled with a strong labor market helped not to change the central bank’s view of the economy.
In a unanimous decision. The Fed decided to leave the interest rate unchanged in the range of 1.5% to 1.75%.
The Fed introduced three interest rate cuts in 2019. Policymakers indicated that interest rates would remain on hold until some major change in economic outlook occurred. That is. Its future policy decisions will be driven by the economic data received.
“The committee believes that the current position of monetary policy is appropriate to support the continued expansion of economic activity. Strong labor market conditions, and inflation due to the committee’s goal of 2 percent.” The Federal Reserve said in a statement.
Given that the U.S. job market is doing well, with a low unemployment rate. The Fed has identified inflation as the primary driver of future policy decisions.
Summary of the Federal Reserve: “The committee will continue to monitor the implications of the information provided on the economic outlook. Including global developments and silent inflationary pressures, as it assesses the appropriate course for the target range for the price of federal funds.”
How will this affect the market? Simply the market will continue in the current range…