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US Fed skips rate hike, keeps interest rate unchanged between 5.25% - 5.5%

As widely anticipated, the US Federal Reserve opted to forgo an interest rate hike on Wednesday, maintaining the federal funds rate within the target range of 5.25% to 5.5%.

Anadolu Agency ECONOMY
Published March 20,2024

The US Federal Reserve skipped an interest rate hike Wednesday, as widely expected, and kept its federal funds rate unchanged between the 5.25% - 5.5% target range.

"In considering any 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 said in a statement

The Federal Open Market Committee (FOMC), however, also added to the latest statement: "Inflation has eased over the past year."

The decision to keep rates unchanged was unanimous as all 12 members of the Committee voted in favor of the move.

While it is the fifth interest rate skip by the Fed in a row, after June, September and November, the federal funds rate remains at its highest in 23 years. The bank last made a rate hike of 25 basis points July 26.

The central bank raised rates by a total of 525 basis points from March 2022 to July 2023 in 11 meetings to fight record inflation that climbed last summer to its highest in more than 40 years.

After soaring to 9.1% last June, annual consumer inflation dropped to 3.2% in February.