US Fed leaves interest rates unchanged at 5.25%-5.5%; sees 1 cut this year

The rate-setting panel unanimously voted to hold the policy rate at the 23-year high mark

The US Federal Reserve (US Fed), on Wednesday, maintained its key interest rate at 5.25 per cent - 5.50 per cent for the seventh straight meeting.

US Fed's Federal Open Market Committee (FOMC), that ended its fourth policy-setting meeting of the year on June 12, unanimously voted to hold the policy rate at the 23-year high mark. 

The US central bank said in its statement, ‘’Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 per cent. In considering any 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.''

While announcing its decision, the rate-setting panel indicated that only one rate cut is anticipated before the year's end. 

In the statement, the US central bank acknowledged resumption of at least some gains in its fight to tame inflation.

 

The FOMC added, ‘’The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward two per cent. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage??'backed securities. The Committee is strongly committed to returning inflation to its 2 per cent objective,'' said  in its statement today