The Strategist

US Fed keeps benchmark rate at 5.25-5.5%

11/02/2023 - 06:58

The Federal Open Market Committee (FOMC) released a statement after its meeting on Wednesday stating that the Federal Reserve System (Fed) maintained the federal funds rate at a range of 5.25 to 5.5% per year.

Federalreserve via flickr
Federalreserve via flickr
The FOMC members unanimously decided on a course of action that most analysts and economists had anticipated.

The rate is still higher than it has been in 22 years.

"According to recent figures, the third quarter saw rapid growth in the economy. While not as dramatic as they were at the start of the year, job growth is still robust, and the unemployment rate is still low. Inflation is still high," the statement reads.

The FOMC mentioned the "steady" rate of improvement in economic activity in a statement from September.

"The American banking system is stable and strong. Restrictions on credit and financial circumstances for individuals and companies may have an impact on inflation, employment growth, and economic activity. The paper stated that it is still uncertain how big these effects could be.

The Committee is still keeping a careful eye on inflation threats.