Arab Finance: The US Federal Reserve has kept interest rates unchanged at 5.25% to 5.5% as inflation is still high, as per a Federal Open Market Committee's (FOMC) statement.

After concluding its two-day policy meeting, the FOMC mentioned the “lack of further progress” towards its 2% inflation target.

“The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks,” the statement read.

The Fed said it does not expect to lower rates until it has "greater confidence" that inflation is moving sustainably towards its target.

It added that, the committee does not expect to lower interest rates until it has “greater confidence that inflation is moving sustainably toward 2%.”

Moreover, the statement mentioned that recent indicators showed that the economy “has continued to expand at a solid pace,” adding that “job gains have remained strong, and the unemployment rate has remained low”

Fed Chair Jerome Powell stated that "It is likely to take longer for us to gain confidence that we are on a sustainable path down to 2% inflation,” noting that he “do not know how long it will take.”

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