The Federal Reserve (Fed) maintained its restrictive monetary policy unchanged. For the second consecutive meeting, the US central bank kept interest rates at 5.25%-5.50%, the highest level for more than two decades, despite a backdrop of economic growth, a strong labor market and that inflation is still above the 2% goal set by the Fed.
In a more than predicted move, the Federal Reserve unanimously agreed to keep the price of money unchanged, in the range established last July. These two consecutive pauses occur after eleven consecutive increases since March 2022, four recorded in 2023.
The committee of governors of the central bank indicated that attention remains regarding the risk of inflation. Thus, the Fed has yet to determine the extent of additional monetary policy measures. However, the Fed, navigating unexpectedly high economic growth and a sharp increase in lending conditions, does not rule out another rate hike this year.
Although many analysts agree with this forecast, others agree that a relaxation is not expected until at least June 2024.
The decision was accompanied by an upward vision of economic growth. In its statement it was indicated that “economic activity expanded at a strong pace in the third quarter, while in September they alluded to growth at a solid pace. On this occasion it is also highlighted that employment had gains that have moderated since the beginning of the year, but remain strong
