Ersin Arslan / Istanbul, December 13 (HNA) – The US Federal Reserve voted Wednesday to hold interest rates at a 22-year high for the third straight meeting and signalled it expects to make three cuts next year.

The Fed’s decision to keep its key lending rate between 5.25 percent and 5.50 percent lets policymakers determine “the extent of any additional policy firming that may be appropriate,” the US central bank said in a statement.

“The Committee seeks to achieve maximum employment and inflation at the rate of 2.0 percent over the longer run” read the Fed statement, and went on as follows:

“In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. The Committee will continue to assess additional information and its implications for monetary policy. In determining the extent of any additional policy firming that may be appropriate to return inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to returning inflation to its 2 percent objective.”

In assessing the appropriate stance of monetary policy, the Committee would continue to monitor the implications of incoming information for the economic outlook, the Fed said in the statement, adding that the Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals.

“The Committee’s assessments will take into account a wide range of information, including readings on labour market conditions, inflation pressures and inflation expectations, and financial and international developments” said in the statement.