The US Federal Reserve on Wednesday decided to hold the rates at 5.25 percent in line with its goals of achieving maximum employment and keeping inflation at 2 percent.

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Here are the top highlights from the Federal Reserve rate decision:

The monetary policy rate will remain at 5.25 percent.> This is the first time in 15 months that the Fed rate has remained unchanged after 10 consecutive hikes

> The Fed has proposed raising rates by 25 basis points two more times by the end of this year.

> This would be followed by a 100 basis point cut in the rates in 2024.

> Two Fed officials see rates staying where they are, and four see a single additional quarter-percentage-point increase as likely appropriate.

> FOMC members also projected rates to be at 4.6 percent in 2024 and 3.4 percent in 2025.

This comes on the back of an anticipated GDP growth of 1% as against the earlier projected 0.4 percent growth.

Also read: US Federal Reserve keeps interest rates unchanged

(Edited by : Pradeep John)

First Published:Jun 15, 2023 12:09 AM IST