The Fed kept the base rate in the range of 5.25-5.5%

The US Federal Reserve has decided not to change the interest rate, leaving it at 5.25-5.5%. This decision was expected and supported by all members of the committee. The rate has remained at this level since July last year.

The Fed noted that economic activity continues to grow at a steady pace, the employment rate remains high, and unemployment is low. Inflation has weakened over the past year, but remains elevated. 

The Fed stressed its determination to reduce inflation to the target level of 2% and its intention to reduce the balance of assets (government bonds and mortgage-backed securities) in accordance with the previously established plan.

Meanwhile, the Fed's medium-term forecast assumes an interest rate cut of 75 basis points in 2024, which corresponds to a three-fold rate cut. Some economists have suggested that this forecast may be revised in favor of two declines.

The market reaction to the Fed's decision on the rate was positive – the main stock indexes showed growth, and the euro strengthened against the dollar.