As expected and predicted, this time the representatives of the Federal Reserve Bank of America did not change their key interest rates again, but noted that inflation is approaching the target, which may open the door for future easing of monetary policy.
"The latest indicators show that economic activity continued to grow rapidly. The number of new jobs has fallen and the unemployment rate has increased but remains low. Inflation has decreased over the past year, but remains slightly elevated. Some progress has been made in recent months towards the Committee's 2 percent inflation target. The committee aims for maximum employment and inflation of 2 percent in the long run. The Committee believes that the risks to the achievement of the employment and inflation targets continue to improve. The economic outlook is uncertain, and the Committee notes the risks to both sides of its dual mandate," the Fed said in a statement.
So the base interest rate in this country will continue to be 5.25 – 5.5 percent, and everyone voted for such a decision
eligible Fed members.
"In considering any adjustments to the target range for the federal funds rate, the Committee will carefully consider the available data, the evolving outlook, and the balance of risks." The Committee does not expect to need to lower the target range until it has more confidence that inflation is moving sustainably toward 2 percent. In addition, the Committee will continue to reduce its holdings of Treasury securities and agency debt and agency mortgage-backed securities. The Committee is firmly committed to returning inflation to the 2 percent target," the Federal Reserve Bank of America announced.
At the same time, it is noted that in assessing the appropriate stance of monetary policy, the Committee will continue to monitor the impact of incoming information on economic prospects. The Committee would be prepared to adjust the monetary policy stance accordingly should risks arise that could impede the achievement of the Committee's objectives. The Committee's assessments will take into account a variety of information, including information on labor market conditions, inflationary pressures and inflation expectations, and financial and international developments.
When asked about the prospects for the September meeting, the head of the American Central Bank, Jerome Powell, assured during the press conference that no preliminary decisions about the next meeting were made today, and they will be determined by the latest economic data. The Fed is getting closer to the target, but has not yet reached it today, so interest rates have not yet been cut.
"The second-quarter inflation reading boosted our confidence, and more good data would add to that confidence," he said.
The next meeting of Fed representatives on monetary policy issues will be held in autumn, ie on September 17-18.
