Federal Reserve on Wednesday held interest rates at a 22-year high for the second time, as it moves to slow stubborn inflation without damaging the strong economy. The Fed's decision to keep its benchmark lending rate between 5.25% and 5.50% gives policymakers time to “assess additional information and its implications for monetary policy," the central bank said in a statement. Below is the statement released by the US Fed on Wednesday after its two-day policy meet— Recent indicators suggest that economic activity expanded at a strong pace in the third quarter.
Job gains have moderated since earlier in the year but remain strong, and the unemployment rate has remained low. Inflation remains elevated. The U.S.
banking system is sound and resilient. Tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain.
The Committee remains highly attentive to inflation risks. The Committee seeks to achieve maximum employment and inflation at the rate of 2% 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%.
The Committee will continue to assess additional information and its implications for monetary policy. In determining the extent of additional policy firming that may be appropriate to return inflation to 2% over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt
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