The Federal Reserve keeps interest rates unchanged and suggests that it will not lower them until inflation is contained

By Rob Wile -

The Federal Reserve announced this Wednesday that it is maintaining interest rates in their current range, while consumer confidence continues to improve and inflation slows.

On the eve of the announcement, some Fed officials noted that the current high interest rates have been enough to reduce inflation closer to the central bank's 2% target.

The US regulator decided to keep rates in the range of 5.25% and 5.5%, their highest level since 2001, after 11 increases, which began in March 2022.

The interest rates set by the Fed are the benchmark for other interest rates throughout the economy, from credit cards to mortgages to business and auto loans.

Dozens of people walk down Fifth Avenue in New York during the Black Friday sales. Bloomberg / Bloomberg via Getty Images

Some economists believe these higher interest rates have helped reduce inflation.

After its meeting this Wednesday, the Fed suggested that it will not lower them until it is sure that inflation is definitively subsiding.