The Federal Reserve has opted to ring out 2023 by keeping rates unchanged.
The central bank’s policy making Federal Open Market Committee voted unanimously to hold the federal funds rate in the range of 5.25% to 5.5%. In offering its decision, the Fed presented a mixed picture of the U.S. economy.
“Recent indicators suggest that growth of economic activity has slowed from its strong pace in the third quarter,” said the Fed in statement. “Job gains have moderated since earlier in the year but remain strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated. The U.S. banking system is sound and resilient. 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.”
The Fed added that it would “continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans.”
