WASHINGTON, Dec. 13 (Xinhua) -- The U.S. Federal Reserve on Wednesday left interest rates unchanged at a 22-year high of 5.25 percent to 5.5 percent as inflation continued to cool, signaling an end to its rate hiking cycle and possible rate cuts next year.
"Recent indicators suggest that growth of economic activity has slowed from its strong pace in the third quarter," the Federal Open Market Committee (FOMC) said in a statement after concluding a two-day policy meeting, the last in 2023.
"Job gains have moderated since earlier in the year but remain strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated," the committee said.
The central bank noted that tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation, adding that the extent of these effects remains uncertain.
This marked the third straight meeting where the Fed remained on hold, and many view that the Fed is done with its tightening cycle, which began in March 2022 amid surging inflation.
According to the Fed's newly released quarterly summary of economic projections, 17 out of the 19 Fed officials project that policy rate will be lower by the end of 2024 than its current level, with most of them expecting rates to fall 50 basis points or 75 basis points. ■