(VOVWORLD) - The US Federal Reserve left interest rates unchanged Wednesday, the first time in nearly two years that the central bank paused rate hikes for two consecutive meetings.
Recent economic data indicates that economic activity expanded at a strong pace in the third quarter. Job gains have moderated since the beginning of the year but remain strong, and the unemployment rate has remained low.
However, the Fed's leader said the central bank is not yet considering reducing interest rates, and even left open the possibility of raising interest rates after December, saying that inflation has not yet reached the expected level and it's necessary to be cautious about upcoming uncertainties and risks.
Over the span of a year and a half, the Fed has raised interest rates to 5.5%, their highest level in 22 years. The prime rate impacts the cost of credit on consumer loans, including credit card accounts. However, the US stock market reacted positively to the decision not to raise interest rates when most indexes increased significantly.