// BBC BUSINESS NEWS — FINANZA
US interest rates held steady and economy grows - what it means for you
The US Federal Reserve has held interest rates steady at 3.75% - 4%.
The decision comes within a week of the midterm elections and after the central bank raised interest rates for the first time in three years at its September meeting.
"The overwhelming consensus, the overwhelming judgement, is that what we've done in this monetary medicine is starting to work some," Fed Chair Kevin Warsh said, referring to September's interest rate rise.
Figures published after the Fed's announcement showed the US economy growing at a stronger pace than expected, with inflation running above the Fed's target.
An interest rate tells people and businesses how much it costs to borrow money – such as with credit cards, mortgages, or business loans – but also what return they get for saving cash.
The Fed influences interest rates in the US through its target range for the federal funds rate, which is the interest rate used by commercial banks for overnight borrowing.
In its decision to hold rates steady this month, the Fed said that while inflation remains high, it wanted to gather more information before making another decision to change rates.
The Fed also noted that while there was uncertainty, the US economy remained resilient.
Warsh acknowledged that inflation remained too high, but noted that there were other signs - such as tightening credit conditions - that the economy was moving in the right direction.
There is plenty more economic data to come between now and the committee's next meeting, the Fed chair added, which should paint a more detailed picture of the state of the economy.