Adhering to the market expectation, the Federal Open Market Committee (FOMC) decided in the September 20, 2023 meeting to keep the benchmark federal funds rate steady at the current target rate of 525-550 bps. The committee said it intends to prioritize balancing the employment figures along with achieving the 2% inflation target.

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FOMC Keeps Interest Rate Steady

The Fed officials said inflation remains elevated while the unemployment rate has remained low. Going further, the committee will assess additional information and its implications for monetary policy, in deciding future rates, it added. Reiterating its previous stance, the FOMC said it is committed to returning inflation to its 2 percent objective. The FOMC statement said,

“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent.”

Meanwhile, the Bitcoin price remained flat in its initial reaction to the Fed rate announcement. Jerome H. Powell, the Chair of the US Federal Reserve, will deliver his post FOMC speech in a live press conference, where he may spill out the Fed’s outlook on inflation target for upcoming meetings.

WATCH LIVE TODAY: Press conference with #FOMC Chair Powell at 2:30 p.m. ET: https://t.co/1uJrua5qsHhttps://t.co/FJa6TbkDMt pic.twitter.com/V7gINNUKP1

— Federal Reserve (@federalreserve) September 20, 2023

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