The US Federal Reserve has maintained interest rates after ten consecutive increases, choosing to pause on further monetary tightening in the face of slowing inflation.
The world’s most powerful central bank said it would keep the Fed Funds rate at 5-5.25 per cent, in line with economist expectations, and the first no-change to borrowing costs since early last year.
The Fed began aggressively tightening borrowing costs in March 2022 as it faced 40-year high inflation caused by a booming economy, high government spending and low unemployment.
In a statement following a two-day meeting, the Fed’s open markets committee said: “Holding the target range steady at this meeting allows the committee to assess additional information and its implications for monetary policy.”
The Fed suggested that it