US Fed Has Left Interest Rate in Range of 1-1.25%
The Federal Reserve System of the United States following the meeting, which took place on October 31 and November 1, decided to keep the interest rate on federal funds rate in the range of 1-1.25% per annum. Fed executives said they plan to raise rates one more time this year and three times in 2018.
The Fed management noted the stable growth of the US economy and recognized that the main indicator of inflation in the US is still low and that this situation is likely to continue in the short term. Nevertheless, the central bank expressed confidence that inflation will reach the expected level of 2% in the medium term.
The next FOMC meeting - the last in 2017 - will be held on December 12-13. According to the expectations of market participants and members of the Fed management, the rate will be increased by 0.25 percentage points, to 1.25-1.5% on the meeting.