On March 18, the United States Federal Reserve kept the key interest rate unchanged, within the range of 3.5-3.75%.
“Available indicators suggest that economic activity is growing at a steady pace. Job growth remains low, and the unemployment rate has changed little in recent months. Inflation remains somewhat elevated,” the press release states.
Federal Reserve officials added that uncertainty regarding economic prospects remains high. The long-term economic impact of events in the Middle East on the U.S. economy is still difficult to assess.
The Fed also reiterated its inflation target of 2%.
The regulator left the rate unchanged for the second time in a row following a series of easings. The decision aligned with market expectations and analysts’ consensus forecast.
Bitcoin showed little reaction to the data release. At the time of writing, the digital gold is trading around $71,600, up 3.7% over the past 24 hours.
Assets in the top 10 by market capitalization also showed no significant changes.
During a press conference, Federal Reserve Chairman Jerome Powell stated that the economy is growing at a stable pace, but inflation remains elevated. The current monetary policy is “appropriate,” considering the situation in Iran.
“The economic impact of events in the Middle East on the U.S. remains uncertain. In the near term, rising energy prices will lead to higher overall inflation, and it is still too early to determine the scale and duration of the potential impact on the economy,” Powell added.
In February, the U.S. consumer price index remained unchanged at 2.4%.