US Federal Reserve keeps interest rate unchanged for fifth time in row

WASHINGTON, March 20 (KUNA) -- The Federal Open Market Committee (FOMC) decided on Wednesday to keep the targeted range of the benchmark interest rate unchanged between 5.25 percent and 5.5 percent, for the fifth straight policy meeting, as inflation remains elevated.
In a press release, the FOMC, the Federal Reserve committee in charge of policy setting, pointed out that it seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run.
"The Committee judges that the risks to achieving its employment and inflation goals are moving into better balance. The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks," reads the statement.
"In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 5.25 to 5.5 percent. In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks." It unveiled that recent indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained strong, and the unemployment rate has remained low.
The Committee argued that it does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.
In addition, the Committee vowed to continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans.
"The Committee is strongly committed to returning inflation to its 2 percent objective," it affirmed.
In assessing the appropriate stance of monetary policy, the Committee said it will continue to monitor the implications of incoming information for the economic outlook.
It confirmed that it would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals.
"The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments," it pointed out. (end) rsr.ibi