US Federal Reserve Keeps Interest Rates Unchanged

2024-08-01 05:32:43

(MENAFN- The Peninsula) QNA

Washington: The US Federal Reserve (the central bank) on Wednsday kept interest rates unchanged, at a range of 5.25% to 5.50%, for the fifth time this year and the eighth in a row, at a time when it seeks to reduce the inflation rate to around two percent.

The Federal Open Market Committee of the bank said in a statement that they see risks to achieving our employment and inflation goals continue to move toward a better balance.

The committee indicated that inflation is approaching the specified target of two percent, which may allow for a reduction in interest rates soon, but it did not give any clear indications about the timing of the potential reduction.

It also stated that recent indicators show that economic activity continued to expand at a solid pace, while job gains declined, the unemployment rate rose but remained low compared to historical levels, and the inflation rate slowed.

Jerome Powell, Chairman of the Federal Reserve, said earlier this month that he does not see the US economy facing a recession or major economic turmoil.

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