Fed Leaves Rates Unchanged

The Federal Reserve, as in July, decided to leave rates unchanged. They will remain in the range of 5.25 to 5.5, which still represents the highest level in the last 22 years.

Tighter monetary policy is containing inflation in the United States, which fell from a peak of over 9% to 3% in June and rose to 3.7% in August. Thus, the work to contain prices is not yet complete, and the US central bank is ready for a possible new hike in 2023.

The Fed is “ready to continue raising rates if necessary. We want to see data and we need convincing evidence that inflation is moving in the direction we want,” Fed Chairman Jerome Powell said. Assessments will be made on a case-by-case basis. The possible further increase before the end of the year would be the 12th since March 2022.