The Federal Reserve decides to maintain interest rates at 5.25%-5.5% with no increase, leaving future possibilities open.

During its November meeting, the Federal Reserve decided to keep interest rates within the range of 5.25% to 5.5%, which had been anticipated by the market. In its statement, the Fed reiterated its commitment to achieving a 2% inflation target and stated that it will closely monitor economic data and make adjustments to its monetary policy if necessary. This indicates that the Fed is not signaling an end to rate hikes and may make adjustments based on changing economic conditions. The Fed acknowledges that inflation remains high and tighter credit conditions for households and businesses could impact economic activity, hiring, and inflation in the future. However, the exact extent of these effects is uncertain and the Fed’s primary focus remains on potential inflationary risks. The market is now eagerly awaiting the press conference with Fed Chair Jerome Powell. Following the policy statement, the market showed little movement, with the dollar index experiencing a small decline and bond yields dropping. The Treasury bond ETF recorded an increase, partly driven by a weaker-than-expected refunding plan. Stock prices remained relatively unchanged, with the S&P 500 ETF gaining slightly and the tech-heavy QQQ Trust surging.