USA, Fed confirms rates and excludes short-term cuts

USA Fed confirms rates and excludes short term cuts

(Finance) – The Federal Reserve, as expected, left the cost of money unchanged in the United States. At the end of the two-day meeting, the monetary policy directorate, the Fomcconfirmed the reference range for fed funds at 5.25%-5.50%.

In the statement released at the end of the meeting, the American central bank inserted a new phrase that shows its determination to do not reduce interest rates in the short term. The FOMC “does not expect that it will be appropriate to reduce key rates until it has greater confidence that inflation is moving sustainably towards the 2% target”, the note reads.

Inflation – underlines the monetary institution – has slowed down in the last year, but still remains high. “The economic outlook is uncertain and we remain very alert to inflation risks,” the Fed says. “As it evaluates any rate adjustment, the Fed will carefully consider economic data, the evolving outlook, and the balance of risks.”

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