US Federal Reserve keeps interest rates unchanged after final policy meeting of the year, indicates that there will be no more cuts in 2020.
The Final Cut: Following its two-day policy meeting this week – the last of its kind this year – the Federal Reserve held interest rates steady in the 1.5%-1.75% range, as was widely expected, amid persistently low inflation. The decision was unanimous, unlike the previous three meetings which witnessed monetary easing and dissent from some Committee members.
Following the previous three cuts, the Central Bank has cumulatively cut interest rates by three quarters of a percentage point so far this year. CNBC
No More Easing?: The Fed also indicated that it would hit pause on further rate cuts next year. In its statement explaining the decision, the committee indicated that monetary policy is likely to stay where it is for an unspecified time, though officials will continue to monitor conditions as they develop. Meanwhile, the White House has been consistently riling against the Fed for not pursuing more aggressive easing to boost the economy. President Donald Trump has been calling for interest rates to be cut to effectively zero. Washington Post
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