Fed policy outcome: Fed keeps rates steady. What does it mean? Experts explain
US Federal Reserve left policy rates unchanged on Wednesday, November 1, at a 22-year high level of 5.25-5.50 per cent. As Mint reported, the US Fed's decision to hold its benchmark lending rate at this level gives policymakers time to "assess additional information and its implications for monetary policy," the central bank said in a statement.
"The Committee seeks to achieve maximum employment and inflation at the rate of 2 per cent over the longer run. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 per cent," the Fed statement said.
The US central bank said it is strongly committed to returning inflation to its 2 per cent objective. Also Read: US Fed Policy: FOMC votes unanimously to keep key rates unchanged at 5.25-5.5% for second straight meeting Let's take a look at what experts have to say about the Fed policy outcome: (Exciting news! Mint is now on WhatsApp Channels.
Subscribe today and stay updated with the latest financial insights! Click here!) As widely expected, the Fed unanimously kept rates on hold, retaining its guidance for potential “additional policy firming." However, the policy message is becoming “more two-sided." The statement did add that “financial" as well as credit conditions should weigh on the outlook, and in his presser, Chair Powell acknowledged the Fed is monitoring how long tighter conditions might persist. Owing to this, yields fell and stocks rose while the USD weakened too.
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