1. US Fed keeps rates steady; Stock Market LIVE Updates

US Fed keeps rates steady; Stock Market LIVE Updates


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5 mins   •   Updated: November 2, 2023, 2:00 PM

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US Fed keeps rates steady; Stock Market LIVE Updates

Summary

On Wednesday, the US Fed kept the key rate unchanged for the second consecutive time. However, it also kept the door open for future rate hikes to tackle inflation.

  1. US Fed keeps rates steady; Stock Market LIVE Updates

    The US central bank kept the benchmark rate unchanged for the second consecutive time. The key rate (5.50%) is currently at a 22-year high as the US Fed continues its battle against inflation. The US rate-setting committee had hiked the key rate by 0.25% in July, taking it to a 22-year high. In August, the retail inflation in the US was at 3.7%, up from 3.2% in July.

    The US Fed statement noted that the 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,” said the US Fed.

    It also added that the U.S. banking system is sound and resilient.

    The Fed also observed that 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,” said the US Fed.

    November 2, 2023 2:00 PM