- The Federal Reserve kept interest rates unchanged, but the policy statement left room for further rate increases in response to the surprising strength of the U.S. economy.
- Economic activity expanded strongly in the third quarter, according to the Fed, upgrading from the “solid pace” mentioned in its September meeting.
- The Fed is considering additional policy firming to return inflation to 2% over time, with strong job gains and elevated inflation.
- Fed Chair Jerome Powell’s press conference is expected to provide more insights into the Fed’s future plans.
- The statement recognized the impact of the Fed’s past rate hikes on economic activity and inflation, showing a degree of patience in deciding on further rate increases.