The US Federal Reserve has decided to keep interest rates unchanged at 5.25%-5.50%. Fed Chair Jerome Powell stated that policymakers are content with the current rate levels until clear economic indicators suggest a need for change, such as a significant decline in price pressures or an increase in unemployment.
“These dynamics can continue as long as they continue,” Powell remarked. “We’ve got a good strong labor market. We think we’ve been making progress toward the price stability goal. We’re asking … is our policy stance about right? And we think yes, it’s about right.”
The central bank’s policy statement noted ‘modest further progress’ on inflation recently but emphasized that rate cuts would only be considered with ‘greater confidence’ in the sustained easing of price pressures.
