The US Federal Reserve has elected to hold its overnight interest rate steady between 3.5 and 3.75 per cent at the conclusion of the Federal Open Markets Committe (FOMC).
“Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East. Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little,” a release accompanying the decision reads. “Inflation remains elevated relative to the Committee’s 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. The Committee will deliver price stability.”
The statement was notably far shorter than those delivered under past Fed Chair Jerome Powell. The decision to hold rates steady was made with no governors dissenting, the first time in several FOMC meetings where there has been no dissent.
