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US Federal Reserve keeps interest rates unchanged

WASHINGTON: The US Federal Reserve kept Wednesday the interest rates steady at 1.5 1.75 percent, the first such decision in 2020, following three interest rate cuts in 2019 and four increases in 2018.

The Federal Reserve said in a statement that the Federal Open Market Committee (FOMC) “decided to maintain the target range for the federal funds rate at 1.5 to 1.75 percent.” The FOMC “judges that the current stance of monetary policy is appropriate to support sustained expansion of economic activity, strong labor market conditions, and inflation returning to the Committee’s symmetric two percent objective,” according to the statement.

It noted that the Committee will continue “to monitor the implications of incoming information for the economic outlook, including global developments and muted inflation pressures, as it assesses the appropriate path of the target range for the federal funds rate.” It added that information received since the Committee’s meeting in December indicates that “the labor market remains strong and that economic activity has been rising at a moderate rate,” whereas “job gains have been solid, on average, in recent months, and the unemployment rate has remained low.”

Source: Kuwait News Agency

ANE