On Wednesday, the Federal Reserve chose to maintain its current interest rates without alterations but retained the possibility of further increases in borrowing costs. In their policy statement, the Federal Reserve acknowledged the surprising robustness of the US economy. However, it also recognized the increased financial pressure experienced by businesses and households.
The U.S. central bank stated, "Economic activity expanded at a strong pace in the third quarter." This declaration emerged after a two-day meeting, during which officials unanimously decided to keep the benchmark overnight interest rate within the range of 5.25% to 5.50%, a level maintained since July.
This statement represents an improvement from the "solid pace" of economic activity observed at the Fed's meeting in September. This alteration comes in response to recent data indicating that the US gross domestic product expanded at an annual rate of 4.9% during the third quarter.
Although the financial markets speculate that the Fed has concluded raising its policy rate, as market-driven interest rates rise independently, the continued presentation of data illustrating a more robust economy and labor market has sustained the possibility of another interest rate increase.
