The US Federal Reserve decided to hold interest rates unchanged in January at 4.5%, in line with expectations.
The Fed statement does not include language that inflation had made progress toward the 2% objective, as it had in the December statement. Investors may see it as the rising 'inflationary risk' approach across the Federal Reserve members. Just after the decision, US500 was losing almost 0.6%.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appAccording to the Fed statement
- Economic activity has continued to expand at a solid pace.
- Unemployment rate has stabilized at low level, labour market conditions remain solid; replacing reference in previous statement to conditions having eased.
- Risks to achieving employment and inflation goals are roughly in balance.
- Balance sheet run-off to continue at previous pace.
- Economic activity has continued to expand at a solid pace.
- Vote in favour of policy was unanimous.
- Fed is attentive to the risks to both sides of its dual mandate.
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
