The second FOMC (Federal Open Market Committee) meeting this week, the U.S. Federal Reserve decided to keep interest rates unchanged, with no changes from their previous meeting. The Fed Chairman announced on Wednesday that the members of the Federal Open Market Committee had unanimously decided to maintain interest rates between 5.25% and 5.50%. These interest rates are already at their highest level in the past 22 years in the United States.
What Jerome Powell, Chairman of the Federal Reserve, Said
Jerome Powell, the Chairman of the Federal Reserve, stated that the Fed will continue to pursue a cautious monetary policy to bring down the inflation rate. The decision to keep the benchmark rates between 5.25% and 5.50% after the two-day Federal Open Market Committee meeting was taken to provide policymakers with additional information and guidance on monetary policy.
Inflation Rate in the United States Remains Above Target – Focus on Major Steps by the Fed
In the United States, the inflation rate remains above the set target of 2%, and the Federal Reserve believes that a flexible approach to interest rates is required to control it. Currently, inflation is hovering around 3.7%, and both the Fed and the U.S. government are making efforts to bring it down.
Consistency in the Second Meeting with Unchanged Interest Rates
This marks the second meeting of the Federal Open Market Committee where interest rates have been kept steady. In the year 2023 alone, rates have already increased four times, making it a total of 11 times the Federal Interest Rates have been raised.
Positive Impact on U.S. Markets
Following the decision by the Federal Reserve, the U.S. markets saw a positive reaction, with the Dow Jones Industrial Average closing at 33,274, showing a 0.67% increase. The Nasdaq Composite also strengthened with a 1.64% increase, closing at 13,061. The S&P 500 index rose by 1.05%, closing at 4,237.