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US Federal Reserve Keeps Key Interest Rate at 5.25-5.5% for Maximum Employment and 2% Inflation Rate

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US Federal Reserve Keeps Key Interest Rate Unchanged

Following the September meeting, the US Federal Reserve System (central bank) decided to maintain the key interest rate at 5.25-5.5%. The central bank cited its commitment to achieving maximum employment and keeping inflation at 2% in the long term.

Continued Focus on Employment and Inflation

The Federal Open Market Committee (FOMC) stated its objective of achieving maximum employment and 2% inflation over the long term. To support these goals, the committee chose to keep the target range for the federal funds rate unchanged.

Potential Future Interest Rate Increase

The FOMC acknowledged the possibility of increasing interest rates in the future as a recommendation. The committee will consider various factors including the overall tightening of monetary policy, the timing of its impact on economic activity and inflation, as well as economic and financial conditions.

Revised GDP Growth Expectations

It is worth noting that the Federal Reserve revised its expectations for US GDP growth in 2023. The new forecast predicts a growth rate of 2.1%, up from the previous estimate of 1.0%.

Source: TASS

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