Suryaa Business Desk: The Federal Reserve, the central bank of America, refrained from raising or lowering interest rates, keeping the benchmark interest rate at 3.75... The Federal Reserve, the central bank of America, has announced that it will keep the benchmark interest rate unchanged at the current range of 3.75 percent to 4.00 percent. In the Federal Open Market Committee (FOMC) meeting, 10 members voted in favor of this decision, while two members voted against it, demanding an increase in rates. An official statement made it clear that the central bank has taken this decision as inflation has not yet reached the desired level and the economy continues to be strong.
In this meeting chaired by the Fed Chairman, the committee opined that domestic consumption and employment growth remained strong, but inflationary pressures have not completely dissipated. The Fed has placed particular emphasis on price stability, particularly in the face of rising fuel prices and geopolitical developments. But it is noteworthy that unanimity could not be achieved in this decision. Governor Lisa Cook and Cleveland Fed President Beth Hammock, however, insisted on raising interest rates by a quarter percent (25 basis points).
Global markets and Wall Street are reacting strongly to this 'hawkish hold' decision by the Fed. Expectations are getting stronger in the market that there is a possibility of an increase in interest rates in the next meeting to be held in the month of December. With the US economy growing faster than expected, economists are analyzing that the Fed will not hesitate to tighten monetary policy in the future.