The Federal Reserve opted to maintain interest rates Wednesday at the range of 5.25% to 5.5% during its November meeting, as widely anticipated by the market.
In the Federal Open Market Committee statement, the Fed reaffirmed its strong commitment to achieving its 2% inflation target. To do so, it will continue to closely monitor incoming economic data and the evolving economic outlook, while remaining ready to adjust its monetary policy should any factors arise that could hinder the FOMC's goals.
Therefore, there's no clear message the Fed plans to stop raising rates, leaving room for adjustments based on changing economic conditions.
The Fed acknowledges that inflation remains elevated and that tighter credit conditions for both households and businesses are likely to exert downward pressure on economic activity, hiring and inflation in the coming period. Yet the Fed emphasizes the exact extent of these effects remains uncertain, with its primary focus remaining on potential inflationary risks.
The market now eagerly anticipates the press conference featuring Fed Chair Jerome Powell scheduled for 2:30 p.m. ET.