US Federal Reserve pauses Interest rates again – Nov 2023

Summary of the Federal Reserve Press Conference on 1st Nov 2023

FOMC leaves interest rates unchanged at 5.25% – 5.50% range.

• Continue to reduce securities holdings at a brisk pace.
• 2nd consecutive meeting that the Federal Open Market Committee (FOMC) chose to pause the interest rates hikes.
• Since March 2022, there have been 11 rate hikes, including 4 in 2023.
• FOMC not considering or even discussing rate reductions at this time.
• US unemployment rate remains low, at 3.8 %. 
• In the 3rd quarter, real GDP is estimated to have risen at an outsized annual rate of 4.9 %, boosted by a surge in consumer spending.
• Housing sector has flattened out and remains well below levels of a year ago, largely reflecting higher mortgage rates.
• Higher interest rates also appear to be weighing on business fixed investment.
• FOMC members observe robust economic growth and so do not anticipate a recession anytime soon.
• Strongly committed to returning inflation to its 2 % objective.