US Federal Reserve Keeps Interest Rate Unchanged At 4.24-4.5 Pct

1/29/2025 7:06:11 PM

(MENAFN- Kuwait News Agency (KUNA)) WASHINGTON, Jan 29 (KUNA) -- The US federal Reserve, in its first meeting after President Donald trump inauguration, maintained Wednesday the targeted range of the benchmark interest rate unchanged between 4.25 percent and 4.5 percent.
In a press release, the Federal Open market Committee (FOMC), the Federal Reserve committee in charge of policy setting, said recent indicators suggest that economic activity has continued to expand at a solid pace.
It clarified that the unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid. Inflation remains somewhat elevated.
"The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run," reads the FOMC statement.
"The Committee judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate."
In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.
The Committee affirmed that it would continue reducing its holdings of Treasury securities and agency debt and agency mortgage?backed securities.
The Committee said it strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee vowed to continue to monitor the implications of incoming information for the economic outlook.
"The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals," added the statement.
"The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments." (end)
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