Mubasher: The International Monetary Fund (IMF) backed the US Federal Reserve’s decision to put a brake on further interest rate hikes as a rational step amid economic anxieties.

“Given the range of global uncertainties facing the U.S. economy, we support the Fed’s decision to be patient in determining future changes to the Federal Funds rate,” IMF spokesman Gerry Rice said, as quoted by Thomson Reuters.

The US central bank’s continued data dependence and clear communication would help rein in any market turbulences and spillovers from its monetary policy decisions.

Amid signs of a sluggish economy, the Fed on Wednesday held its interest rates at their current level, ending its three-year monetary policy tightening cycle.

Moreover, the central bank said it would pause the steady decline of its balance sheet in September.