The US Federal Reserve has kept interest rates unchanged for the fourth time this year. Interest rates have been raised frequently in the recent past in the fight against inflation, but the worst of the price hike now appears to be behind us.
That is why the interest rate is in the range of 5.25 to 5.5 percent. All twelve members of the interest rate decision-making body unanimously agreed to keep the rate unchanged.
The central bank, or Federal Reserve, warned that inflation was still high. Policymakers want prices to rise by an average of 2 percent, but inflation in the U.S. was more than 3 percent in November.
Federal Reserve Chairman Jerome Powell, in his explanation of the interest rate decision, said it was “too early” to say that high inflation had been overcome. A fresh increase in interest rates is still possible, if necessary. At the same time, Powell said there was also discussion about when the right time to cut rates was.
The announcement boosted stock prices in financial markets. Another factor is that the Federal Reserve places less emphasis in its explanatory notes on the possibility of new interest rate hikes, which is generally detrimental to the value of stocks.