Federal Reserve holds interest, hints to pause cuts in 2020

The US Federal Reserve decided today to hold interest rates unchanged between 1.75% and 1.50%, in a widely expected move to pause to assess the appropriate path and the implications of last three cuts of this year.

The Fed stated that the current monetary policy is appropriate to stimulate the US economic growth, a strong labor market, and inflation near the bank's target of 2%.

Federal Reserve officials removed the word "uncertainty" from their statements this time, which the markets interpreted as a hint of the possibility of changing interest rates in the near-term.

Most Fed's members expect that the bank's monetary policy will not change in the next year and will be raised only once in 2021.

The statement also showed that there is no concern among members compared to previous meetings, as the lowered their forecasts about the unemployment rate in 2020 to 3.5% from 3.7% in previous estimates.

They also forecast the US GDP to continue growing above or under the 2% over the next three years.

While the Federal Reserve stressed on the continued strength of the labor market and the continued economic growth at a moderate pace.