US Fed Policy: The Federal Reserve has kept the benchmark interest rates stable in the range of 5.25-5.50 percent. It is still at its peak of 22 years.
US Fed Policy: The Federal Reserve did not make any changes in the policy interest rates in the FOMC meeting and kept them stable at 5.25-5.50 percent. This decision of the Federal Open Market Committee (FOMC), which sets the interest rates of the US Federal Reserve Bank, has brought relief to the markets around the world. By keeping the interest rates unchanged, the Fed Chairman has kept them at a 22-year high.
There was no change in rates for the third consecutive time
After the two-day FOMC meeting, the US Federal Reserve Chairman has kept the benchmark interest rate at 5.25-5.50 percent in the last rate meeting of the year 2023 . This remained as per market expectations and for the third time in a row, FOMC has adopted an unchanged stance.
Federal Reserve hints at relief for the year 2024
The Federal Reserve has definitely indicated relief for the year 2024 and Fed Chairman Jerome Powell has talked about cutting interest rates by 0.75 percent next year. Apart from this, the unemployment rate in America has been estimated at 4.1 percent for 2024. At the same time, America’s GDP growth forecast for next year has been cut. It has been reduced from 1.5 percent to 1.4 percent.
Fed committee’s comment on inflation rate
Fed Chairman said that the inflation rate has decreased but it remains above expectations. According to the Fed Chairman, the core inflation rate is expected to decline to 2.4 percent by the end of 2024, which is lower than the forecast of 2.6 percent given in September. Core inflation takes into account the cost of food and power. It is considered a better measure of the future path of inflation.
Happiness was seen in American markets – markets jumped
After the decisions of the FOMC meeting yesterday, obviously a positive environment was created for the US markets and a strong rise was seen in the US market in Wednesday’s trade. There was enthusiasm in the American markets and after January 2022, Dow Jones closed at a record high. A rise of 1-1 percent was recorded in Nasdaq and S&P 500.
