The Federal Open Market Committee (FOMC) of the Federal Reserve of the United States decided to keep interest rates unchanged in a target range between 2.25% and 2.5 %, thus fulfilling market expectations.
However, the monetary authority warned that it will “closely monitor” the developments in economic forecasts to fulfill its dual mandate to keep inflation stable and achieve maximum possible employment.
The US labor market generated a total of 75,000 non-agricultural jobs during May, while the unemployment rate remained stable at 3.6%, its lowest level since 1969, according to data from the Bureau of Labor Statistics.
The economy experienced an annualized growth of 3.1% in the first quarter of 2019, representing an increase of nine-tenths over the previous three months, according to the second estimate of the data published almost three weeks ago by the US Bureau of Economic Analysis.
On the other hand, the index of prices of personal consumption expenditure, the variable preferred by the Fed to monitor inflation, stood at 1.5% in April compared to the same month last year.
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