Fed Keeps Rates Steady As Economic Signals Come In Mixed

Federal Reserve policymakers chose not to raise the benchmark interest rate at the conclusion of the Federal Open Market Committee meeting, skipping an increase for the second time since the bank began increasing borrowing costs in March 2022.

The call, which was widely expected, keeps the target for the federal funds rate at 5.25-5.50 per cent.

The decision comes as the US economy has been giving mixed signals in recent months. The latest reading of the consumer price index revealed that annual inflation climbed to 3.7 per cent in August, the second consecutive month of faster price gains this year, even as core readings that exclude energy and food prices continue to trend down. Meanwhile, the labor market is still fairly robust, with August payrolls posting a larger-than-expected gain of 187,000 jobs. Wage gains are cooling, however, and the unemployment rate rose to 3.8 per cent last month.