Arab Finance: The US Federal Reserve maintained interest rates unchanged at a range of 3.50% to 3.75%, citing growth in economic activity despite regional conflict, according to a statement by the Federal Open Market Committee (FOMC).
The US economy continues to expand at a solid pace despite elevated uncertainty, partly stemming from the ongoing conflict in the Middle East, the central bank noted.
It also highlighted strong productivity growth and robust capital investment as key drivers of economic resilience.
Commenting on the announcement, Federal Reserve Chair Kevin Warsh said: “For some households, businesses and market professionals, five years of high inflation have left a mistaken impression that’s hard to shake that the Fed’s implicit inflation target was somehow above 2%.”
He added: “Let me reiterate: There is no soft inflation target. There is no soft implicit target, not on this committee’s watch. There’s only a target, and it’s 2%.”
Meanwhile, the committee reaffirmed its policy of maintaining ample reserves in the banking system.
