US Fed keeps interest rate unchanged
Fed chief Jerome Powell says the justification for further increases has 'weakened' amid 'cross-currents' battering the US economy
Washington — The Federal Reserve left the key US lending rate unchanged on Wednesday, and said it would be “patient” about making any further changes, in the clearest signal yet the central bank has heeded concerns about the economy. Although the Fed continues to expect continued expansion of the economy and strong jobs growth are the “most likely outcomes”, the statement signalled the growing uncertainty about the outlook. “In light of global economic and financial developments and muted inflation pressures, the committee will be patient as it determines” the timing and need for any further increases, the policy-setting Federal Open Market Committee said. In an unusual separate statement, the Fed also said it was prepared to change the pace of reduction of its massive securities holdings, after markets became concerned that the current process was too rigid.
The language used in the FOMC statement, keeping the benchmark interest rate in a range of 2.25% to 2.5%, reflected the...
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