US Fed keeps rates unchanged at 5.25%-5.5%, highest in 23 years

By Ovunc Kutlu

ISTANBUL (AA) - The US Federal Reserve on Wednesday kept its federal funds rate unchanged in the 5.25%-5.5% target range, as widely expected, which is the highest level in 23 years.

In recent months, there has been "some further progress" toward the Federal Open Market Committee’s (FOMC) 2% inflation objective" it said in a statement, replacing "modest further progress" that was used in the previous statement on June 12.

"Job gains have moderated, and the unemployment rate has moved up but remains low," said the Fed.

In the June statement, the Fed said: "Job gains have remained strong, and the unemployment rate has remained low."

Inflation has eased over the past year, but remains "somewhat elevated," it added.

The decision to keep rates unchanged was unanimous, with all 12 committee members voting in favor of the move.

The FOMC reiterated it does not expect that it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably towards its goal of 2%.