(MT Newswires) -- Fed Chairman Jerome Powell reiterated the US central bank's commitment to its primary objectives of maximising employment and stabilising prices. He noted economic progress, with inflation falling without a significant rise in unemployment.
However, inflation remains above the Fed's 2% target. Monetary policy remains unchanged, with the current key interest rate maintained at between 5.25% and 5.5%, and the Fed reducing its balance sheet, which has already been reduced by more than $1,300bn.
GDP growth was 3.3% in the last quarter and 3.1% for 2023 as a whole. The labour market remains robust, with an average of 165,000 jobs created per month over the last three months and the unemployment rate stable at 3.7%.
Inflation has fallen, with consumer prices (PCE) rising by 2.6% over the past 12 months, and core prices (PCE), excluding food and energy, rising by 2.9%.
The Fed considers that its key rate has probably reached its peak for this tightening cycle, but stresses that economic developments remain uncertain and that the bank remains attentive to inflationary risks. Future rate adjustments will depend on incoming economic data and the outlook for inflation moving towards the 2% target. The Fed is committed to bringing inflation back to its target and keeping long-term inflation expectations well anchored.
ación a largo plazo.
