The US Central Bank of Federal Reserve did not make any changes in its benchmark interest rate on Wednesday. The Fed Reserve said that the interest rate will remain unchanged within a radius of 4.25-4.50%. Earlier, the Fed Reserve had cut rates three times in a row last year. This is a sign of Fed’s more cautious approach as he wants to guess in which direction the inflation is going and what policies can President Donald Trump adopt. According to AP news, the Fed Reserve led by Jerome Powell said that the job market is strong. The unemployment rate has stabilized the lower level in recent months. Fed also strictly strictly strictly strictly said that it remains somewhat high.
The rate was reduced from 5.3% to 4.3%
According to the news, Fed had reduced its rate from 5.3% to 4.3% last year, partly due to concern that the job market was getting weaker. The summer recruitment slowed down and the unemployment rate had increased, due to which the Fed officials approved a huge cut of half points in September. Nevertheless, recruitment increased last month and the unemployment rate fell slightly to 4.1%.
What did Jerome Powell say
Fed president Jerome Powell postponed the questions about President Trump’s recent comments, including a comment of last week when Trump said that he would reduce oil prices and then demand low rates. do. He also said that he would talk to Powell about this. Powell said that I am not going to react or comment on whatever the President has said. Asked if Trump had told his desire of low rates directly to Powell, the chairman of the Fed said that he had no contact.
Unanimously decided
Fed said that voting in favor of the policy of keeping the rates stable was unanimously. This means that all the 12 Federal Reserve officials who voted in this month’s meeting agreed to keep the interest rates unchanged. Kathy Bostgenic, the chief economist at Nationwide Financial, said Powell’s comments show that the Fed would not re -cut the rates by the middle of this year.
