Federal Reserve Likely to Maintain Rates Amid Mixed Economic Indicators
The Federal Open Market Committee (FOMC) of the U.S. Federal Reserve is set to meet on September 19-20, 2023, with market expectations suggesting a pause in rate hikes, keeping the rate at 5.25%5.5%, a level close to a 22-year-high. This follows a series of rate increases aimed at maximizing employment and maintaining inflation at around 2%.
In the previous FOMC meeting in July, the Fed raised the key rate after a brief pause, bringing it to its current level. However, recent data from the U.S. Bureau of Labor Statistics indicates an unexpected increase in the unemployment rate to 3.8% in August from 3.5% in July, potentially prompting the Fed to slow or halt further rate hikes.