US Federal Reserve keeps interest rate unchanged - Economist

After waiting by investors, the US Federal Reserve announced that the key "interest rate" will remain unchanged at 0.25% at its first meeting in 2022.

In the same context, Jerome Powell, Federal Reserve Chairman announced that it would soon be appropriate to raise the target rate for the federal funds rate.

Powell added that the Fed will end the bond purchases program in early March, while he said that supply and demand imbalances related to the Corona pandemic and reopening the economy still contribute to high inflation, in addition to the risks facing wages in the labor market.

The Fed said that indicators of economic activity and employment still indicate a strong performance, while job gains have been strong in recent months and the unemployment rate has decreased significantly, and that in the current rates of inflation and employment, the economy no longer needs high levels of support.