The Federal Reserve’s monetary policy committee deemed it inappropriate to reduce interest rates until there is greater confidence that inflation is sustainably stabilizing at 2%.
The US Federal Reserve (Fed) kept its reference rates unchanged this Wednesday, justifying its position with the “lack of progress” in the fight against inflation.
The North American central bank also announced that, in June, it will begin to more slowly reduce the volume of assets on its balance sheet.
The American reference rates remain in the range between 5.25 and 5.50%, the Fed said in a statement, announcing, however, that, starting in June, it will begin to slow the rate of reduction of its rates. assets, which means a beginning of flexibility. its monetary policy.
The Federal Reserve’s monetary policy committee deemed it inappropriate to reduce interest rates until there is greater confidence that inflation is sustainably stabilizing at 2%.
To address the rising cost of living, the US central bank, led by Jerome Powell, raised reference rates 11 consecutive times between March 2022 and July 2023.
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Source: Observadora
