The Federal Reserve in its Federal Open Market Committee statement dated January 30 said, “the committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes,” while keeping the current lending rate unchanged.
The Federal Reserve chaired by Jerome H. Powell stated: “the committee continues to view sustained expansion of economic activity, strong labor market conditions, and inflation near the committee’s symmetric 2 per cent objective as the most likely outcomes.”
However, despite the FOMC expectation towards the continuous expansion of the economy and jobs, the committee decided to maintain the target range for the federal funds rate at 2-1/4 to 2-1/2 per cent.
The Federal Reserve is also preparing for the future uncertainty as it Ii an unusual separate statement stated that it was prepared to change the pace of reduction of its massive securities holdings after markets became concerned that the current process was too rigid.
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