Fed maintains interest rate amid economic growth

(MENAFN) On Wednesday, the US Federal Reserve decided to maintain the benchmark policy rate at 4.25 percent-4.5 percent, a move that was widely anticipated by market experts. In its statement, the Fed noted that recent economic indicators show continued growth in economic activity, with the unemployment rate remaining low. This suggests that the overall economic conditions are stable and expanding at a solid pace.

However, the Fed also acknowledged that inflation continues to be somewhat elevated, despite progress in other areas. The central bank emphasized its ongoing commitment to achieving two main objectives: supporting maximum employment and bringing inflation down to its 2 percent target. This dual mandate remains a key focus of the Fed's policy decisions.

The Federal Reserve has maintained its policy rate at the historically high level of 5.5 percent since July 2023, intending to curb inflation. Over the past three meetings, the bank gradually lowered the rate to its current range of 4.25 percent-4.5 percent, reflecting the evolving economic landscape and efforts to balance growth with inflation control.

Overall, the Fed’s stance remains cautious, with a focus on addressing inflation while ensuring economic stability. The central bank's actions will continue to influence both the broader economy and financial markets in the coming months.

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