On Wednesday, the 11th of December 2019, at its final policy meet of the year, the US Federal Reserve kept interest rate on hold adding that the benchmark lending costs in the United States would not be changed anytime soon which had been well in alignment with the analysts’ expectation.
Besides, as beforementioned, December’s FOMC meet kept Fed’s overnight borrowing cost unchanged between 1.50 per cent to 1.75 per cent, while 13 out of 17 Fed policymakers said they had not been anticipating another rate cut at least until 2021.
Aside from that, following December FOMC minutes, the US Federal reserve had also hinted a persistent economic growth alongside a nearly fifty-year-low unemployment rate would likely to sustain until 2020 US presidential election.
Meanwhile, addressing to a favourable economic outlook throughout 2020, Fed Chair Jerome Powell said in a news conference shortly after release of policy statement, “Our economic outlook remains a favourable one, despite global developments and ongoing risks.
As the year progressed, we adjusted the stance of monetary policy to cushion the economy and provide some insurance ... This shift has helped support the economy and has kept the outlook on track. We don’t have to worry so much about inflation. ”