Fed keeps interest rate steady, signals no rate-cut at least until end-2020


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Fed keeps interest rate steady, signals no rate-cut at least until end-2020

On Wednesday, the 29th of January 2020, the US Federal Reserve left borrowing cost unchanged following the year’s first policy meet, while Fed Chair Jerome Powell hinted a moderate economic growth alongside a strong job market, however did not proffer any detail on US balance sheet.

On top of that, after keeping interest rate unchanged on Wednesday’s (January 29th) FOMC minutes, the US Federal Reserve alongside his Chair, had not provided with any kind of sign that the US Central Bank might change interest rate anytime soon, affirming analysts’ belief that there might not be a rate-cut until at least end-2020 following three interest rate cuts last year.

Meanwhile, after the US Central Bank had unanimously decided to keep the borrowing cost unchanged at 1.50 per cent for short-term lending and 1.75 per cent for long-term, Federal Reserve Chair Jerome Powell said in a press conference shortly after the release of Fed’s policy decision on Wednesday (January 29th), “We believe the current stance of monetary policy is appropriate to support sustained economic growth, a strong labour market and inflation returning to our symmetric 2% objective,” adding the global growth outlook was steadying and tensions around the global trade policies had been de-escalating.