Fed Chairman keeps interest rate @3.5%
Fed Chairman Jerome Powell also pointed out that economic activity has been expanding at a solid pace.
Washington, Mar 18 (EFE).–
The United States Federal Reserve kept interest rates in the 3.5%- 3.75% range on Wednesday, but pointed out that the repercussions of the war with Iran are “uncertain.”
The Federal Open Market Committee stated in the press release issued at the end of its two-day monetary policy meeting that uncertainty about the economic outlook “remains high” and that “The implications of developments in the Middle East for the US economy are uncertain.”
The Fed also pointed out that economic activity has been expanding at a solid pace.
Regarding its dual mandate of achieving full employment and inflation of around 2%, the Fed stated that “job gains have remained low, and the unemployment rate has been little changed in recent months. Inflation remains somewhat elevated.”
The latest inflation data, for February, showed core inflation at 2.5% year-on-year, while the labor market report revealed 92,000 jobs were lost last month.
The Fed’s decision to keep interest rates unchanged aligns with market expectations, despite President Donald Trump’s insistence.
Trump, who has pressured Fed Chairman Jerome Powell to unprecedented levels to loosen monetary policy, has called an emergency meeting to address the Iran-Contra affair and the resulting rise in oil prices, to discuss an immediate rate cut.
Powell, who just chaired the FOMC meeting for the penultimate time, is scheduled to leave his post in May, and the US president has nominated Kevin Warsh, a former Fed governor, as his successor. EFE
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