Fed keeps interest rates unchanged for 2nd time straight

Federal Reserve headquarters

The US Federal Reserve decided today, March 19, to fix interest rates for the second consecutive time. The interest rate was maintained at the 4.25-4.50% range.

The Federal Open Market Committee (FOMC) said that economic activity has continued to expand at a strong pace, with labor market conditions remaining robust.

Unemployment rate is at a low level, while inflation remains somewhat elevated.

FOMC added that the Fed aims for maximum employment. The long-term inflation target is 2%.

According to the FOMC statement, uncertainty regarding the economic outlook has increased.

Meanwhile, the Fed will continue to reduce its holdings of securities. Starting in April, the pace of Treasury securities reduction will slow down.

The Fed is prepared to adjust monetary policy as necessary. The committee will focus on evaluating the labor market, inflation data, and forecasts.

FOMC will also assess financial and international developments. All 12 committee members voted in favor of holding interest rates steady. Only one member advocated for maintaining the current pace of bond holdings reduction.