The US central bank's campaign to raise interest rates to reduce inflation has achieved some success after many months. On June 14, the Federal Reserve (Fed) decided to keep interest rates unchanged at 5-5.25%, according to Yonhap.
Fed Chairman Jerome Powell holds a press conference on keeping interest rates unchanged in Washington DC on June 14
"Recent indicators suggest that economic activity has continued to expand at a moderate pace. Employment has increased strongly in recent months and the unemployment rate remains low," the Federal Open Market Committee (FOMC), the Fed's policy-making body, said in a statement.
The agency said tighter credit conditions for households and businesses could weigh on economic activity, employment, and inflation. The magnitude of these effects remains uncertain, and the committee remains closely monitoring inflation risks.
Keeping interest rates steady gives policymakers more time to assess further information and the implications for monetary policy.
The Committee said it would stand ready to adjust the stance of monetary policy as appropriate if risks emerged that could impede the achievement of the Committee's objectives.
To protect the economy from the Covid-19 pandemic, the Fed kept interest rates near zero. However, as the economy reopened and demand increased, causing prices to rise, the Fed began raising interest rates from March 2022.
From a peak of more than 9% last year, inflation has been reduced to 4% and the Fed's further target is 2%, according to NHK.
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