Federal Reserve keeps interest rate unchanged

NEW YORK, The US Federal Reserve’s Federal Open Market Committee has maintained the interest rate steady at 2.25-2.5 percent.

“The committee seeks to foster maximum employment and price stability. In support of these goals, the committee decided to maintain the target range for the federal funds rate at 2-1/4 to 2-1/2 percent,” the FOMC stated in a press statement Wednesday.

It also indicated that it intends to conclude the reduction of its aggregate securities holdings at the end of September 2019.

It downgraded the growth estimate for this year to 2.1 percent from the 2.3 percent projection made in December.

Furthermore, the FOMC forecasted a growth rate retreat to below 2 percent through 2021.

Contrary to previous estimates in December, about two 0.25-percentage-point rises in the short-term federal funds rate in 2019, the FOMC on Wednesday expected that there would be no hikes this year and the first one may be in 2020.

Source: Kuwait News Agency