Despite concerns about inflation: US Federal Reserve Chairman Jerome Powell leaves interest rate unchanged

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Ulrich Rotzingerhead of economy

Interest rate break in the USA: The Fed keeps interest rates constant between 5.25 and 5.5 percent, the highest level in 22 years. The central bank of the world’s largest economy had previously increased interest rates 11 times in 16 months, most recently in July, as part of the fight against inflation.

“Recent indicators suggest economic activity is improving at a solid pace,” the US Federal Reserve writes on X (formerly Twitter). However: Inflation is still high. “The committee continues to monitor inflation risks closely,” he continues. The committee, led by Fed Chairman Jerome Powell (70), is determined to bring inflation back to the 2 percent target.

The rise in oil prices could increase inflation

Inflation continues to rise in the USA. Consumer prices increased by 3.7 percent in August. For comparison: Inflation rose to 9 percent last year.

Oil prices are currently fueling fears that inflation will rise even further. The barrel price of crude oil is approaching $100. Whether this increase is just a temporary phenomenon or something permanent is a concern for central bankers around the world.

According to central bank data released Wednesday, inflation in the United States is expected to average 3.3 percent in 2023; This represents an increase of 0.1 points compared to the previous estimate in June. The Fed expects an inflation rate of 2.5 percent for 2024. The central bank is committed to price stability and full employment targets and aims for an inflation rate of 2 percent.

The US stock market was waiting for the Fed’s decision, but there was no upward or downward price movement immediately afterwards.

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Source :Blick

Tim

I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.