Title: Federal Reserve Puts Interest Rate Hikes on Pause, But Tightening Measures Remain Possible
Source: China News Network
Release Time: 22:02, September 21, 2023
On September 20, the U.S. Federal Reserve announced that it would maintain the target range for the federal funds rate at 5.25% to 5.5%, aligning with market expectations. However, the central bank did not rule out the possibility of implementing further tightening measures in the future.
During a press conference following the meeting, Federal Reserve Chairman Powell emphasized that controlling inflation is an ongoing concern. He stated that “controlling inflation still has a long way to go” and highlighted the Federal Reserve’s commitment to monitoring the risks high inflation poses to the United States. As a result, Powell hinted at the possibility of additional tightening measures and potentially maintaining high interest rates for an extended period.
Over the past year and a half, the Federal Reserve has aggressively raised interest rates 11 times, in an effort to combat high inflation. This upward trajectory has seen interest rates climb from near zero to the current range of 5.25% to 5.5%, which represents the highest level in 22 years.
The Federal Reserve’s decision to pause interest rate hikes comes as recent indicators continue to show persistent high levels of inflation in the United States. The central bank will closely monitor economic data to assess the effectiveness of its monetary policy going forward.
The market will now pay close attention to any future announcements or actions by the Federal Reserve, as the possibility of further tightening measures remains on the table.
(Editor: Ji Xiang)
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