Federal Reserve keeps rates unchanged despite elevated inflation
WASHINGTON (AP) -- The Federal Reserve kept its key rate unchanged Wednesday at about 3.9% despite stubbornly high inflation, as Chairman Kevin Warsh
The Federal Reserve decided to keep its key interest rate at about 3.9% on Wednesday, despite high inflation, according to a statement released after its two-day meeting. Chairman Kevin Warsh indicated that the Fed's policies are already showing some impact. The central bank's decision was made after raising its benchmark rate by a quarter-point last month for the first time in three years.
The Fed aims to combat inflation by raising rates to reduce borrowing and spending, thereby slowing price increases. While Warsh did not disclose future plans, economists expect another quarter-point increase at the Fed's next meeting on December 8-9. However, the Fed decided not to hike rates further, citing factors such as the rapid buildout of artificial intelligence infrastructure and higher energy prices that may be difficult to control with higher interest rates.
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Also reported by 8 other outlets
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