US Federal Reserve, interest rate unchanged

At the end of a two-day meeting this Wednesday, central bank officials unanimously decided that the Fed would keep the benchmark interest rate unchanged at 5.25-5.50 percent given the lack of progress toward the goal of achieving that the inflation rate is two percent.

“In recent months, there has been a lack of further progress toward the (Federal Reserve) inflation target of two percent,” a statement stressed.

Inflation in the United States ranges between three and four percent (with a spike in March), which is why the Fed noted that it “does not expect it to be appropriate to reduce the target range until it has gained greater confidence” that that indicator “ is moving sustainably toward” the purpose.

Legislators from the progressive wing of the Democratic Party have called for the reduction of interest rates, because they consider that they pose a heavy burden on citizens.

A recent CNN poll found that 65 percent of those interviewed said the economy will be an extremely important issue when deciding the vote in the November 5 elections. In 2020 it was 40 percent in 2020 and in 2016 it was 46.

While the approval rate of President Joe Biden, who will seek his second term, is only 34 percent and only 29 percent are satisfied with how he has handled inflation, according to the survey.

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