Saturday, February 24, 2024

The Federal Reserve has not lowered interest rates in the United States

The Federal Open Market Committee (FOMC) of the United States Federal Reserve (Fed) decided to keep the interest rate in the target range of between 5.25% and 5.5%, according to a statement.

The institution once again kept its monetary policy unchanged for the fourth consecutive meeting. The last increase of 25 basis points in the currency price happened in July.

“The Committee will continue to carefully evaluate future information, the changing environment, and the balance of risks,” explained the central bank.

The decision-making body indicated that it “does not consider it appropriate to reduce the target range until it gains greater confidence that inflation will return sustainably to 2%.”

In assessing the appropriate stance of monetary policy, the Committee assured that it will continue to monitor the implications of future data for the macroeconomic picture.

GDP grew more than twice

The economy of the world’s leading power experienced an annual growth of 4.9% of its GDP in the third quarter of 2023, compared to 2.1% in the previous section, according to the Bureau of Economic Analysis (BEA).

On the US labor market side, it created 199,000 non-agricultural jobs in November. This allowed unemployment to be reduced by two tenths, to 3.7%, according to the Bureau of Labor Statistics of the Department of Labor.

The unemployment rate in the US once again approached the minimum recorded in January and April, when it stood at 3.4%. This is the lowest rate since 1969.

Regarding the price index of personal consumption expenditure, the variable preferred by the Fed to monitor inflation, it stood at 2.6% year-on-year in December, the same figure as last month. The monthly rate recorded a rebound to 0.2% from the previous negative reading of 0.1%. The underlying variable closed at 2.9%, three tenths less.

World Nation News Desk
World Nation News Desk
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