The Fed fixed the interest rate unchanged at the range between 5.25 percent and 5.50 percent, the highest in 22 years. In its decision, the Fed did not indicate that the current monetary tightening cycle that it initiated to control inflationary pressures is about to end.
The Fed raised interest rates 11 times in a year and a half, pushing interest rates to the highest range in more than 22 years. The Fed hinted that it still expects a further rate hike before the end of the year as well as possible rate cuts next year.
Although no rate hike is expected, uncertainty and speculation about the further hike will remain valid from this moment on.
Source (CNBC Arabia Website, Edited)
