Interest Rate Unchanged At 5.25 To 5.50 Percent For Sixth Straight Time

The US Federal Reserve has kept the key interest rate unchanged at 5.25 to 5.50 percent for the sixth straight time, in line with market estimates. After a two-day Federal Open Market Committee (FOMC) meeting, US apex bank last night decided unanimously to keep the benchmark lending rate unchanged, citing a lack of further progress towards its two percent inflation target. For months, the US central bank has held its benchmark lending rate at a high level to cool demand and rein in price increases. But inflation has accelerated, throwing cold water on hopes of an early rate reduction. The US Fed said, it does not expect to lower rates until it has greater confidence that inflation is moving sustainably towards its target. Federal Reserve Chair Jerome Powell told a press conference that it is likely that gaining such greater confidence will take longer than previously expected.