The Fed keeps interest rate unchanged
After a two-day meeting on interest rates, the US Federal Reserve announced that it will keep interest rates unchanged. The decision is in line with market expectations, and the federal funds rate will remain at 2.25 to 2.5%. After the meeting, the statement deleting the word for patience on interest rates, it also emphasized the increase in uncertainties in the future. Under the trade tension between China and the United States and the slowdown in global economic growth, the number of members expected to cut interest rates this year has increased.
A post-meeting statement from the Fed pointed out that under the low unemployment rate and strong consumption growth, the economic outlook is still positive. However, trade tension, slowing manufacturing growth, and decreasing corporate investment have added to the uncertainty. The Fed expects the US economy to grow 2.1% this year and the inflation to fall to 1.8% at the end of the year, down from 2% expected in May. The committee will closely monitor the situation and will act appropriately to sustain the expansion.