The US Federal Reserve (Fed) left interest rates unchanged on Wednesday (Jan 31) but took a major step towards lowering them in coming months in a policy statement that tempered inflation concerns with other risks to the economy and dropped a longstanding reference to possible further hikes in borrowing costs.
The US Federal Reserve (Fed) left interest rates unchanged on Wednesday (Jan 31) but took a major step towards lowering them in coming months in a policy statement that tempered inflation concerns with other risks to the economy and dropped a longstanding reference to possible further hikes in borrowing costs .
The US central bank’s latest policy statement gave no hint that a rate cut was imminent, and indeed said the policy-setting Federal Open Market Committee (FOMC) “does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%”, the Fed’s inflation target. “Inflation has eased over the past year, but remains elevated,” the Fed said in the statement after a two-day meeting, restating that officials “remain highly attentive to inflation risks
US Federal Reserve Interest Rates Inflation Concerns Policy Statement Borrowing Costs