The U.S. Federal Reserve decided to maintain the benchmark interest rate at 3.75%-4%, despite persistent high inflation

The United States Federal Reserve has decided to keep its benchmark interest rate in the 3.75%-4% range, despite persistently high inflation. The decision is aimed at supporting maximum employment and returning inflation to the 2% target over the long term.

Unlike at the previous meeting, when a 0.25 percentage-point rate increase was approved unanimously, the current decision was challenged by two members of the Fed’s leadership. Lisa Cook, a member of the Board of Governors, and Beth Hammack, president of the Federal Reserve Bank of Cleveland, voted in favor of another 0.25 percentage-point increase.

In a statement published after the meeting, the U.S. central bank acknowledged that inflation remains high and said it would assess upcoming economic data before deciding on further measures. According to the latest statistics, the annual inflation rate in the United States rose to 3.7% in September, from 3.4% in August.

The Fed reiterated that it will act to ensure price stability and achieve its 2% target. The next meeting is scheduled for December 8 and 9.