“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,” the Fed said on Wednesday in a statement after the meeting of the Federal Open Market Committee, the top decision-making body
NEW YORK:
The Federal Reserve left interest rates unchanged on Wednesday but took a major step towards lowering them in coming months in a policy statement that tempered inflation concerns with other risks to the economy and dropped a longstanding reference to possible further hikes in borrowing costs.
The US Federal Reserve Bank has kept the interest rate unchanged for the fourth consecutive time after its customary two-day meeting, saying the “economic outlook is uncertain” despite the economy was “expanding at a solid pace”.
The Fed has kept the rate at 5-1/4 to 5-1/2 per cent.
“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,” the Fed said on Wednesday in a statement after the meeting of the Federal Open Market Committee, the top decision-making body.
The U.S. Treasury 10-year yield initially rose before reversing course and recently stood at around 3.984%. The 2-year yield was last at 4.258%.