As expected, the Federal Reserve (Fed) announced this Wednesday, November 1, that it would maintain its key interest rates at their current level, from 5.25 to 5.50%. Therefore, for the second time in a row, the US central bank is keeping its rates unchanged, encouraged by a strong US economy and persistent inflation.
The Federal Reserve also highlighted the strength of the labor market and economic activity, despite successive rate hikes aimed at curbing inflation, which “remains high.” The institution specifies that it also wants to observe the evolution of the economy, in particular “the cumulative effects” of rate increases.
After falling for several months, the latter stabilized at 3.4% at an annualized rate in the last three months, according to the PCE index, favored by the Federal Reserve. However, at the same time, consumption is not weakening and growth skyrockets, multiplied by two in the last quarter, after an already very solid first half, to reach 4.9% annual rate.
At the same time, unemployment remains stubbornly low at 3.8%with the persistence of labor shortages in several key sectors.
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Source: BFM TV
