Despite calls from its president to slash rates... the U.S. Federal Reserve has left its key interest rate unchanged... signaling that it will be patient in making the next move.
Kim Da-mi reports.
Chairman of the U.S. Federal Reserve Jerome Powell announced that the central bank will keep its benchmark rate in the range of two-and-a-quarter to two-and-a-half percent,... unchanged since March.
The Federal Open Market Committee explained that the labor market is strong and that economic activities continue to rise at a solid rate.
"All I can see is that we have an economy where the expansion is continuing, growth is at a healthy level, the labor market is strong. We see job creation. We see wages moving up. Inflation is low, which gives us the ability to be patient, and we do expect it to move up, and we want it to move up two percent. So, I see us on a good path for this year."
The Fed acknowledged both overall and core inflation "have declined and are running below" the central bank’s 2 percent target.
The chairman also added that there was a slowdown in household spending and business investment in the first quarter,... noting that the basis for healthy economy is consumer spending and business investment.
Earlier on Tuesday, U.S. President Donald Trump tweeted that the Fed should reduce rates by 1 percent to help the US economy "go up like a rocket".
While the Wall Street Journal reported that key officials of the Fed are reviewing conditions of the benchmark rate,... the Fed chief said for now, low inflation allows the central bank to be "patient" in deciding on any further changes to its overnight benchmark lending rate.
Kim Da-mi, Arirang News.