Key Insights
- Fed left the federal funds rate unchanged, in line with analyst consensus.
- According to Fed projections, U.S. economy remains in a decent shape, while unemployment rate is expected to stay low.
- Fed expects higher rates in 2024 compared to its June projections.
On September 20, Fed announced its Interest Rate Decision. The Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent, in line with the analyst estimates.
Fed noted that it was strongly committed to returning inflation to its 2% target. The reduction of holdings of Treasury securities and agency debt and agency morgage-backed securities will continue as previously planned.
Fed also noted that job gains have slowed in recent months but remained strong, while the unemployment rate was low. The situation in the job…
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