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Powell: The Federal Reserve leave rates unchanged

The feds said that "economic activity expanded at a strong pace in the Q3" following policymakers' unanimous decision to keep rates unchanged

The Federal Reserve held interest rates steady on November 1 while policymakers grappled with whether financial conditions would be sufficiently tight enough to contain inflation or if the economy would continue to outpace forecasts and necessitate even more restraint.

Fed Chair Jerome Powell acknowledges that there is still some mystery surrounding the matter. In the event that inflationary pressures rise, U.S. Central Bank officials will raise interest rates yet again. Still, they are also cautious about the potential impact of a rise in market-based interest rates on the economy. They are trying to prevent more disruption of the current dynamic of consistent wage and employment growth.

Following the conclusion of a two-day policy meeting, Powell addressed the media and stated that, in light of the current uncertainties, it would be prudent to keep the Fed’s benchmark overnight interest rate in the current range of 5.25% to 5.50% while monitoring changes in job and price data through to the December policy meeting.

Powell stated that it was still unclear whether overall financial conditions were restrictive enough to control inflation, which he still views as being far above the central bank’s 2% target, nearly 20 months into the Fed’s aggressive tightening of monetary policy.

In addition to keeping the Fed’s benchmark rate unchanged for the second straight meeting, Powell’s remarks clarified a policy decision and assessment he made earlier this year. Powell called attention to the “Outsized” 4.9% annual pace of U.S. economic growth in the July–September period following a spike in consumer spending.”

The U.S. Federal Reserve said that “economic activity expanded at a strong pace in the third quarter,” following policymakers’ unanimous decision to keep interest rates unchanged. Compared to the “Solid pace” of activity the Fed observed as of its September meeting, the language represented an improvement.

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Jaelyn Campbell
Jaelyn Campbell
Jaelyn Campbell is a staff writer/reporter for CBT News. She is a recent honors cum laude graduate with a BFA in Mass Media from Valdosta State University. Jaelyn is an enthusiastic creator with more than four years of experience in corporate communications, editing, broadcasting, and writing. Her articles in The Spectator, her hometown newspaper, changed how people perceive virtual reality. She connects her readers to the facts while providing them a voice to understand the challenges of being an entrepreneur in the digital world.

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