US Fed keeps interest rate between 5.25 - 5.5 pct.

WASHINGTON, Dec 13 (KUNA) -- The Federal Open Market Committee (FOMC) voted unanimously on Wednesday to keep the targeted range of the benchmark overnight borrowing rate unchanged between 5.25 percent and 5.5 percent for the third consecutive time.

The Federal Open Market Committee (FOMC).

Recent indicators suggest that growth of economic activity has slowed from its strong pace in the third quarter, according to a press release from the Board of Directors of the Federal Reserve. 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 US banking system is sound and resilient, the statement affirmed. "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 statement noted.
The FOMC seeks to achieve maximum employment and inflation at the rate of two percent over the longer run. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. The Committee will continue to assess additional information and its implications for monetary policy. In determining the extent of any additional policy firming that may be appropriate to return inflation to two percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals, according to the statement. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments, it added. (end) rsr.gb.