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The U.S. Federal Reserve has left the interest rates unchanged at the target range of 5-1/4 to 5-1/2 percent.
The decision was taken at the Federal Open Market Committee (FOMC) meeting Wednesday, which observed that the country’s economic expansion accelerated in the third quarter.
The Federal Reserve said in a statement that although job gains cooled slightly through the year, they remained strong.
However, the unemployment rate has remained low and inflation remains elevated, the Fed Reserve press release said.
In its comments on the economy’s performance, the committee has said that tighter financial and credit conditions for households and businesses may weigh on economic activity, hiring, and inflation.
Although the extent of these effects is uncertain, the Committee remains “highly attentive to inflation risks,” the statement said.
The Committee seeks to limit employment and keep inflation at 2 percent in the longer run. Furthermore, it will continue to monitor the situation and its implications for monetary policy.
The Committee proposes to continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities to achieve the 2 percent inflation objective.
Fed Reserve chair Jerome H. Powell, Vice Chair John C. Williams, Michael S. Barr, Michelle W. Bowman, Lisa D. Cook, Austan D. Goolsbee, Patrick Harker, Philip N. Jefferson, Neel Kashkari, Adriana D. Kugler, Lorie K. Logan, and Christopher J. Waller attended the meeting.
To read the Federal Reserve Press Release go here .