Fed keeps interest rates unchanged

December 12, 2019 (MLN): The US Federal Reserve has kept its benchmark interest rate unchanged in a target range of 1.5%-1.75% at its final meeting of the year on Wednesday.

The move was widely expected by the market with the Fed also indicating that there was be no action likely anytime soon with the inflation rate being persistently low.

According to a statement issued by the fed, “The Committee judges that the current stance of monetary policy is appropriate to support sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective. 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.”

Furthermore, according to the statement, the decision to keep rates unchanged was unanimous.

The Fed has cut its benchmark rate three times between July and October this year to protect the US economy from slowing global growth as well as fallout from various trade disputes started by President Donald Trump.

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