US fed leaves interest rate unchanged

June 14, 2023 (MLN): The U.S. Federal Reserve decided to maintain the interest rate at 5-5.25%, holding the target range steady at this meeting allows the Committee to assess additional information and its implications for monetary policy.

However, the Committee expressed strong support for more rate hikes this year and would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals.

Fed officials see fed funds rate at a median of 5.6% at end of 2023, implying two more rate hikes.

The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.

The Fed sees inflation at 2.5% by the end of 2024.

It is pertinent to note that, this is the first time in 15 months, the Fed did not raise rates.

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