The U.S. Federal Reserve chose to keep its benchmark lending rate at its 22-year high for a second consecutive time at a monetary policy meeting on Wednesday. This decision was made with the aim of bringing down inflation to its 2-percent target.
At the latest Federal Open Market Committee (FOMC) gathering, the central bank declared that the rate would remain in the range of 5.25 to 5.50 percent. It also declared that it would adjust its policy stance “as appropriate” if risks arise that could impede its objectives of achieving “maximum” employment and the inflation target.
At the preceding FOMC meeting in September, the bank held the rate at its current level – the second pause in its rate-hiking campaign that began in March last year with the intention of controlling inflation. In the July FOMC meeting, the rate was increased by a quarter percentage point to the current level.
In a press release, the Fed gave its assessment of the overall U.S. economic conditions, saying “recent indicators suggest that economic activity expanded at a strong pace in the third quarter. Job gains have moderated since earlier in the year but remain strong, and the unemployment rate has remained low.” Despite this, it noted that the committee remains “highly attentive” to inflation risks, noting inflation remains elevated.
It is uncertain whether the Fed would continue to keep the benchmark rate unchanged during the next FOMC meeting scheduled for Dec. 12-13.