According to information published on the official website of the US Federal Reserve System (FRS), the regulator decided to leave the key rate unchanged at 5-5.25%.
This is the first period of halting rate increases, which began in the spring of 2022.
Previously, the Fed made 10 consecutive rate hikes in an attempt to contain the rising inflation rate in the country. In June 2022, inflation hit a record 9.1%, the highest level in 40 years. Since March 2022, the rate has been raised by a total of 500 basis points. Before that, for two years, the rate was at the level of 0-0.25% per annum, RBC reports.
The Fed press release notes that the US banking system is in good condition and is stable. Deteriorating credit conditions for households and businesses are expected to dampen economic activity, employment and inflation, although the extent of these effects is not yet clear. The Fed continues to closely monitor inflationary risks.