The US Federal Reserve System (FRS) has decided to maintain the interest rate on federal loan funds at the level of 5.25-5.5% per annum. This decision was made unanimously by the members of the Federal Open Market Operations Committee (FOMC) and coincided with the expectations of analysts and economists. It should be noted that this rate is the highest in the last 23 years and its value remains unchanged for the fourth time in a row. The Fed's decision is due to the current economic situation, in which there is an increase in economic activity, moderate job growth and low unemployment. However, inflation remains high, although it has weakened slightly over the past year. Representatives of the Fed said that the regulator will continue to reduce the amount of assets on its balance sheet in accordance with the plan that was previously announced. The Fed's main goal is to bring inflation back to the 2% level. The FOMC Committee intends to carefully assess incoming data and the balance of risks when considering changes in the target rate range. It does not seem advisable to reduce the rate until there is greater confidence in the stable approach of inflation to 2%. The Fed is also ready to adjust its approach to monetary policy if risks arise that hinder the achievement of the Committee's goals. This will be based on data on the labor market, inflationary pressures, inflationary expectations, and developments in financial markets and the global economy. The reaction of the US stock market to the Fed's decision was negative: The Dow Jones Industrial Average was in weak positive territory, the S&P 500 and Nasdaq Composite lost 0.7% and 1.2%, respectively.
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