US Federal Reserve remains cautious on interest rate hikes

As expected, this month’s monetary policy meeting of the US Federal Reserve saw it maintain the key funds interest rate at 0.375% for a second consecutive meeting.

The decision to leave policy unchanged, though, was not unanimous, with one of the 10 voting committee members preferring to raise interest rates.

The tone of the post-meeting statement showed that the Fed remains positive on the prospects for the US economy, but, at the same time, it is cognisant of the risks emanating from the global economy and financial markets.