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The US Federal Reserve has held interest rates constant for the sixth consecutive meeting, holding them at a 23-year high to combat relentless price hikes.
Following a two-day meeting, central bank policymakers unanimously decided on Wednesday that the Fed will leave the benchmark lending rate steady at 5.25-5.50 percent, citing a “lack of further progress” towards its two percent inflation target.
“The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks,” the Fed stated in a statement.
For months, the US central bank has kept interest rates high in order to reduce demand and limit price hikes, with last year’s slowdown in inflation stoking hopes that the first cuts were on the way.
However, price hikes have quickened, casting doubt on the possibility of a rate drop this summer.
The Fed also said on Wednesday that, beginning in June, it would slow the rate of fall in its securities holdings by “reducing the monthly redemption cap on Treasury securities from $60 billion to $25 billion.”
As hopes for rate cuts in the first half of the year fade, the Fed faces the increased prospect that future drops may coincide with the run-up to the November presidential election.
The timetable may be unsettling considering that the Fed, as the independent US central bank, strives to prevent any appearance of politicization.
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