The US Federal Reserve has kept its official interest rates unchanged, as was widely anticipated by the financial markets, but has hinted at rate cuts next year.
In support of its goal of achieving 2 per cent annual inflation over the longer run, the Fed maintained the target range for the Federal funds rate at 5.25 to 5.50 per cent.
The Fed’s “dot plot” forecasts showed most officials expect rates will end next year at 4.5-4.75 per cent, suggesting three quarter-point cuts in the Fed funds rate.
It was the fourth pause recorded by the bank so far this year.
The US central bank said recent indicators suggested that growth in economic activity had slowed from its strong pace in the third quarter.