The Federal reserve system (FRS) that perform the functions of the Central Bank, kept its benchmark interest rate at 1.5-1.75 per cent as expected by the market. This is stated in the message of the financial regulator following the meeting of its leadership.
“In accordance with its statutory mandate, the Committee on open market operations seeks to foster maximum employment and price stability. The Committee decided to maintain the target range for the Federal funds rate from 1.5 to 1.75%”, – stated in the message controller.
It is noted that current monetary policy is considered to be the FOMC (Federal Committee on open market operations – Ed.) appropriate to support sustainable growth in economic activity, strong conditions of employment and inflation close to 2%. The regulator explained that the Committee will continue to monitor incoming information on economic prospects and to evaluate, including global changes and inflation, in determining the future direction of the target range for the Federal funds rate.
The preservation rates unanimously voted by all 10 members of the Committee. The market had expected such a scenario.
The next fed policy meeting will take place on 18 March 2020 and will be accompanied by an updated macroeconomic forecasts.