American Federal maintained interest rates

Washington, Ta. 30 January 2020, Thursday

At the end of the policy meeting, the US Federal Reserve has decided to keep the main interest rate unchanged. The federal decision has come amid strong job markets and expectations of a sustained growth rate. "The rise in employment is strong and the unemployment rate is significantly lower," said Federal Reserve Chairman Jerome Powell in a conversation with meeting ministers. The Federal Committee on Policy Determination has maintained interest rates in the range of 5.5 percent to 8.5 percent.

He said the current interest rate was justified in supporting the expansion of the country's economic activity. The recent outbreak of coronavirus in China has left the US economy in the outlook of uncertainty.

Coronavirus poses a threat to deepening depression in China. The Fed has not released any new guidelines on its current practice of buying US Treasury bills worth $ 1 billion a month to ensure that liquidity is maintained in bank funding markets in the short term.

The practice will continue until April. The decision to maintain the interest rate is unanimously decided by the committee.

In order to boost the economy, the federal government cut interest rates three times. The trade war with China was adversely affected by the US economy. The global economy is stagnating and uncertainties in trade policies are decreasing, Powell said.

The US economy is on the verge of recovery and there is no risk of rising inflation at present, so the decision to keep interest rates has come as expected. Powell also said that any change in the policy would require reassessment of Economic Outlook.