There were no surprises. As expected, The US Federal Reserve (Fed) has decided to maintain its interest rates at 5.5% for the third consecutive time, a level which places the rate at its highest level since January 2001.
Since the last 25 basis point increase in the price of silver that the Fed carried out last July, the institution has decided paralyze the tightening of American monetary policy.
This opens the door to potential interest rate cutssomething that the chairman of the Federal Reserve, Jerome Powelldoes not exclude: “We think we are probably at or near the peak rate of this cycle”Powell pointed out.
The Federal Reserve, in making its decision public, indicated that to make decisions at its next meetings “will take into account the cumulative tightening of monetary policy and the delay with which this affects economic activity and inflation, as well as the development of economic and financial events.
The central bank assured that is “fully committed” to the goal of reducing inflation to 2% and indicated that it was ready to adjust its monetary policy if risks arise that could prevent it from reaching the aforementioned figure.
US inflation continues to fall
In this sense, it should be noted that, as recalled Europe Presshe personal consumption expenditure price index (the variable preferred by the Fed to track inflation) was in October to 3% over one yearthat’s to say, four tenths less than the previous month.
If you observe the monthly price According to statistics, the personal consumption expenditure price index recorded stagnation, four tenths less than in September. The variable underlying was encrypted in 3.5%, or two tenths less.
As for GDPthe economy of the world’s leading power has experienced a annualized growth of 5.2% in the third quarter of 2023 compared to 2.1% in the previous sectionaccording to the Bureau of Economic Analysis (BEA).
Respect to American labor market, 199,000 non-agricultural jobs were created during the month of November, which allowed reduce unemployment by two tenths, up to 3.7%, according to the Department of Labor’s Bureau of Labor Statistics. As a result, the unemployment rate in the United States has again approached the minimum recorded in January and April, when it stood at 3.4%, its lowest rate since 1969.