The Federal Reserve (Fed) left interest rates unchanged this Wednesday to allow time to test the delayed effects of the latest rate hikes and see if they have raised borrowing costs enough throughout its 18-year campaign. months against inflation to cool the economy. The central bank led by Jerome Powell maintained the reference rate in the range of 5.25%-5.5%, its highest level since 2001, thus resuming the pause it adopted in June.
“Recent indicators suggest that economic activity has been expanding at a slowing pace in recent months, but it remains strong, and the unemployment rate has remained low. Conditions are likely Tighter credit for households and businesses affects economic activity, hiring and inflation. The extent of these effects remains uncertain,” the Fed notes in its statement.
