Inflation up, rates on hold at US Fed - Thu 29 Oct

The US Federal Reserve decides to maintain interest rates, reflecting a strong jobs market and solid economic activity. Garth Bray highlights that unemployment insurance claims are at their lowest in decades, indicating robust job growth. Despite this positive outlook, inflation remains a concern, with the core inflation measure set to be released soon, which could show a year-over-year increase if it exceeds 0.3 percent.

In the markets, the US dollar shows weakness against other currencies, with the trade-weighted index at a low level compared to recent trends. The bond market sees slight increases, while oil prices rise amid geopolitical tensions, particularly regarding military actions in the Gulf region.

Bray also discusses recent job statistics from StatsNZ, revealing a 1 percent increase in employment, largely driven by public administration and safety sectors. Small businesses report a 5.6 percent sales growth, suggesting a potential increase in hiring confidence among smaller enterprises. Overall, New Zealand's job market sees a net gain of 22,000 jobs over the past year, with significant contributions from public sector roles.

US economic activity goes from 'solid' growth to 'strong' growth as Federal Open Market Committee votes 10-2 to maintain rates at 3.75% to 4%. See omnystudio.com/listener for privacy information.