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The US Federal Reserve left key interest rates unchanged on Wednesday, citing expanded economic activity in recent months and robust job gains, which has kept unemployment low.
The Federal Open Market Committee (FOMC) decided to maintain the target range for the federal funds rate at 5 to 5-1/4%. "Holding the target range steady at this meeting allows the Committee to assess additional information and its implications for monetary policy," the monetary authority said in a statement late on Wednesday night.
The committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run, it added.
According to the Fed's projections, most policymakers are projecting two more quarter-point increases this year, in a move that would lift the benchmark rate to 5.5% to 5.75%
“The slowdown of US inflation in May to 4% has provided the Federal Reserve with the confidence to pause rate hikes at the 5% - 5.25% range following 10 straight rate increases since March last year. While there are signs that the worst of the inflationary pressures are behind us, Federal Reserve officials have made it clear that rates may yet go higher later this year if inflation remains sticky," said Srijan Katyal, Global Head of Strategy & Trading Services at the international brokerage ADSS.
(Writing by Brinda Darasha Brinda.darasha@lseg.com; editing by Seban Scaria)
