WASHINGTON: The US Federal Reserve’s monetary policy committee has paused the key interest rate in its latest meeting on Wednesday. The policy rate has been maintained at 5.0-5.25 per cent, which was near zero after the outbreak of Covid-19.
Barring the latest pause, the US central bank has hiked the interest rate for the tenth consecutive time which was necessitated in the fight against soaring inflation.
“Holding the target range steady at this meeting allows the committee to assess additional information and its implications for monetary policy”, the US Federal Reserve monetary policy statement said.
The Committee said it is strongly committed to returning inflation to its 2 per cent objective. The consumer inflation in the US is now around 4.9 per cent, falling sharply from a 40-year high of 9.1 per cent in June 2022.
“The Committee will be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals”, the US monetary policy statement said, hinting it may further hike rates if the need arises. (ANI)