Inflation in the United States has fallen significantly since hitting a four-decade high last summer, but prices are still rising faster than the Federal Reserve’s target of 2% annually.
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The Federal Reserve of USA left interest rates unchanged on Wednesday, but noted that future rate hikes are still possible if that’s what is needed to curb persistent inflation.
This was the second consecutive meeting in which authorities kept rates stable between 5.25% and 5.5%, after an aggressive series of increases over the previous year and a half.
Inflation has fallen significantly since hitting a four-decade high last summer, but prices continue to rise faster than the Federal Reserve’s target of 2% annually.
Despite sharply rising borrowing costs, consumers still spend freely on cars, restaurant meals and concert tickets.
The country’s economy grew at an annual rate of 4.9% in July, August and September, with personal spending driving much of that increase. The North American central bank highlighted the “strong” pace of growth when announcing its decision.
The FED is also monitoring the labor market, which has shown notable resilience to rising interest rates.
Unemployment has been below 4% for 20 consecutive months. That streak will likely extend to 21 months when the October unemployment rate is reported on Friday.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
