Federal Reserve opts to leave rates unchanged but maintains hawkish stance

‘Wait and see mode’

The Federal Reserve opted to hold its benchmark interest rate at current levels, but maintained a hawkish stance on the future path for monetary policy.

After a two-day meeting, the Fed declared that its federal funds rate would be held in the 5.25 and 5.5% range, the same level as when it last increased rates in July. Rates have risen 11 times since March 2022 from near zero, but yesterday's (20 September) decision marked the second time this year that the Fed left interest rates unchanged to evaluate the effects of prior hikes on inflation and the overall economy. US unemployment ticks up in August to 3.8% Fed chair Jerome Powell said in his Federal Open Market Committee statement: "Recent indicators suggest that economic activit...