class = “sc-cffd1e67-0 iQNQmc”>
The US Federal Reserve (Fed) left interest rates unchanged at a high level for the fourth consecutive year. According to the Federal Reserve Council’s announcement in Washington on Wednesday, this rate remains in the range of 5.25 to 5.5 percent. Commercial banks can borrow from the central bank at this rate.
The decision was awaited. This is the highest value in more than two decades. The Fed has raised its key interest rate by more than five percent since March 2022 at a record pace in the fight against inflation, but has recently stopped adjusting the interest rate screw.
Inflation is still too high
The Fed had promised to cut interest rates this year. However, monetary authorities in Washington want to wait a little longer and do not want to reveal the situation too early. Because – that being said – you first really want to make sure that inflation is moving significantly towards the desired 2 percent inflation target. Inflation in the US is currently 3.4 percent.
It is also unclear how quickly inflation will approach the price stability target. Therefore, the Fed still leaves the markets uncertain about when the change in direction towards interest rate cuts will begin.
Source :Blick
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.
