Federal Reserve officials voted to leave its benchmark interest rate unchanged at a range of 5.25%-5.50%.
“Recent indicators suggest that economic activity expanded at a strong pace in the third quarter. Job gains have moderated since earlier in the year but remain strong, and the unemployment rate has remained low. Inflation remains elevated,” the Federal Reserve said in a statement.
“The U.S. banking system is sound and resilient. Tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain. The Committee remains highly attentive to inflation risks.”
The statement explained that the Committee “seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. The Committee will continue to assess additional information and its implications for monetary policy.”
“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 statement added. “The Committee’s 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.”
Reporting from Breitbart:
The economy grew at a pace of 4.9 percent in the third quarter of this year, beating almost all forecasts and indicating a big acceleration of economic activity. The personal consumption expenditure price index, which the Fed uses to set its two percent target for inflation, has been stuck at 3.4 percent year-over-year increases for three months, suggesting that inflation may be have become stuck at a high level. On a month-to-month basis, inflation accelerated from the 0.2 percent rate in June and July to 0.4 percent in August and September. The labor market has not softened, defying expectations. On Wednesday, the Labor Department said job openings edged up to 9.6 million from 9.5 million a month earlier. The jobs report for September showed payrolls growing by an enormous 336,000. On Friday, the Labor Department will release jobs numbers for October. The consensus forecast is for the economy to add 183,000 jobs.
