WASHINGTON (Sputnik) – The Federal Reserve has ended US interest rate cuts after three reductions this year, saying in a statement on Wednesday that strong economic and labor market conditions supported the decision.
“The Committee decided to maintain the target range for the federal funds rate at 1.5 to 1.75 percent”, the US central bank said in the December policy statement by its Federal Open Market Committee. “The Committee judges that the current stance of monetary policy is appropriate to support sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective”.In assessing the appropriate path for future rate decisions, the central bank said it will continue to monitor the implications of incoming information for the US economic outlook, including global developments and muted inflation pressures.
“Although household spending has been rising at a strong pace, business fixed investment and exports remain weak”, the Federal Reserve statement said. “On a 12‑month basis, overall inflation and inflation for items other than food and energy are running below 2 percent”.It said market-based measures of inflation compensation also remained low, while survey-based measures of longer-term inflation expectations were little changed.
The US economy added 266,000 jobs in November, the Labor Department announced last week, beating market expectations for just 184,000 new jobs.
The unemployment rate fell to a 50-year low of 3.5 percent from 3.6 percent previously, the department said.
Prior to Wednesday’s decision, the Federal Reserve cut rates three times back-to-back between July and October, reducing a quarter percentage point each time.
Owen Shroyer takes to the streets of Manhattan.
Also, get all you need to completely stuff Christmas stockings this year with our Christmas Mega Pack sold AT COST during the 12 Days of Christmas Sale!
Visit the USSA News store!
Click this link for the original source of this article.
Author: Kit Daniels
This content is courtesy of, and owned and copyrighted by, https://www.newswars.com and its author. This content is made available by use of the public RSS feed offered by the host site and is used for educational purposes only. If you are the author or represent the host site and would like this content removed now and in the future, please contact the USSANews.com administrator by using the contact form located in the top-left menu. Your request will be immediately honored. Please visit https://www.newswars.com for more terrific, conservative content. The owner of this website may be paid to recommend American Bullion. The content of this website, including the positive review of American Bullion, the negative review of its competitors, and any other information may not be independent or neutral.