(LEAD) U.S. Fed keeps key lending rate unchanged for 3rd straight time

▲ This file photo, taken March 13, 2015, shows the Federal Reserve's headquarters in Washington, D.C. (Yonhap)

(LEAD) FOMC-benchmark rate

(LEAD) U.S. Fed keeps key lending rate unchanged for 3rd straight time

(ATTN: UPDATES throughout)

By Song Sang-ho

WASHINGTON, Dec. 13 (Yonhap) -- The U.S. Federal Reserve held its benchmark lending rate steady for a third consecutive time during a monetary policy meeting on Wednesday, saying inflation has eased over the past year though it still remains elevated.

After the two-day Federal Open Market Committee (FOMC) meeting, the central bank announced the decision to keep the rate between 5.25 and 5.50 percent, and hinted that its hiking campaign -- launched in March 2022 -- may be near or at an end.

"While we believe our policy rate is likely at or near its peak for this tightening cycle, the economy has surprised forecasters in many ways," Fed Chairman Jerome Powell told a press conference.

But he stressed that the Fed is prepared to tighten policy further if appropriate.

"We are committed to achieving a stance of monetary policy that is sufficiently restrictive to bring inflation sustainably down to 2 percent over time and to keeping policy restrictive until we're confident that inflation is on a path to that objective," he said.

After raising the benchmark rate by a quarter percentage point to the current level at the July meeting, the Fed froze it in the ensuing FOMC meetings in September and November.

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