Washington: Despite the US President Donald Trump’s repeated calls for cutting the interest rate, the US Federal Reserve decided Wednesday to keep the targeted range of the benchmark interest rate unchanged between 4.25 percent and 4.5 percent. In a press release, the Federal Open Market Committee (FOMC), the Federal Reserve committee in charge of policy setting, said that although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace.

According to Kuwait News Agency, the FOMC noted that the unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid. Inflation remains somewhat elevated. The FOMC said that it seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run.

It added that uncertainty about the economic outlook has increased further. The Committee emphasized that it is attentive to the risks to both sides of its dual mandate and judges t
hat the risks of higher unemployment and higher inflation have risen. “In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” it argued.

The Committee vowed that it would continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities. It reaffirmed strong commitment to supporting maximum employment and returning inflation to its 2 percent objective. “In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook.

“The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals,” the FOMC sta
ted. It pointed out that its assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.