FED LEAVES KEY US INTEREST RATE UNCHANGED

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WASHINGTON (Alliance News) – The US Federal Reserve left its benchmark interest rate unchanged Wednesday after a two-day meeting in Washington.

The central bank pointed to a strengthening labour market and moderate economic growth, while inflation continues to remain below the Fed’s target of 2%.

The Fed calibrates monetary policy toward the dual goals of maximum employment and price stability.

The benchmark rate was hiked in December after seven years at an unprecedented near-zero range.

Since raising its key rate to a target around 0.375%, the Fed has pared back its expectations for when monetary policy will return to normal levels.

The Fed said it “expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate.”

Copyright dpa

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