US Federal Reserve keeps benchmark interest rate unchanged

US stock prices rose following the decision while yields on the US government debt fell.

Keeping interest rates unchanged, the Federal Reserve said it expected to start winding down its massive holdings of bonds ‘relatively soon’ in a sign of confidence in the US economy.
 
In a statement following a two-day policy meeting, the Fed's rate-setting committee indicated the economy was growing moderately and there are more job opportunities now.  
 
Continuing the slow path of monetary tightening that has lifted rates by a percentage point since 2015, the US central bank has kept its benchmark lending rate in a target range of 1.00 per cent to 1.25 per cent. 
 
Overall inflation and a measure of underlying price gains had declined but that it expected the economy to continue strengthening. 
 
US stock prices rose following the decision while yields on U.S. government debt fell. The dollar fell against a basket of currencies. 
 
(Source: Agency) 

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