US FOMC meet outcome: Federal Reserve Chairman Jerome Powell-led Federal Open Market Committee (FOMC) voted Wednesday to pause its aggressive campaign of interest rate hikes despite "elevated" inflation, while indicating that another sharp increase could be needed before year-end.
After 10 straight increases since March 2022, the Fed's rate-setting committee voted to hold its benchmark lending rate between 5.0 per cent and 5.25 per cent, the central bank said in a statement. Holding interest rates steady gives policymakers on the FOMC time "to assess additional information and its implications for monetary policy," the Fed said.
The US central bank began its two-day policy meeting on June 13 to set its benchmark lending rate amid cooling inflation in the world’s largest economy. The FOMC, consisting of twelve members, will announce its decision on interest rates on June 14. The Fed has raised interest rates 10 times since March 2022 as it grapples with inflation which still remains well above its long-term target of 2 per cent.
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