- KPB & Co Research
Chairman of the Federal Open Market Committee today outlined that they decided to keep the target rate for the federal funds within the range of 2.25% to 2.5%. The decision to keep the target monetary policy rate unchanged came within the context of perceived economic stability holding true for the near term. According to the US Federal Reserves, overall inflation excluding food and energy is below 2%, inflation expectations have remained stable, economic expansion still has steam, and labor market conditions remain strong. While there is no immediate need to become more accommodative, the US Federal Reserve also believes that downside risk have risen in recent times. This degree of uncertainty will keep the Federal reserves attentive to ongoing developments in the labor market, indicators of inflation pressures and inflation expectations, and developments in financial markets and international trade.