On June 13, 2024, the U.S. Federal Reserve announced it would maintain its benchmark interest rate in the current range of 5.00% to 5.25%, signaling a pause in the aggressive rate hikes seen over the past year aimed at curbing inflation. The decision aligns with the Fed’s ongoing strategy to balance economic growth and inflation control.
Source:- BBC news
In its latest economic projections, the Fed indicated a more cautious outlook for rate adjustments, suggesting only one rate cut by the end of 2024, a shift from previous expectations of multiple cuts. This stance reflects the central bank’s cautious approach as it monitors the effects of higher interest rates on the economy, particularly on consumer spending and borrowing.
Source:- news 18
Federal Reserve Chair Jerome Powell, in his post-meeting press conference, emphasized the need for patience as inflation trends toward the 2% target. He noted that while inflation has shown signs of easing, it remains elevated, and the labor market continues to be robust. Powell reiterated the Fed’s commitment to data-driven decision-making and flexibility in its policy approach.
The Fed’s decision to hold rates steady and its moderated outlook for future rate cuts indicate a focus on ensuring economic stability and preventing premature easing of monetary policy, which could reignite inflationary pressures.
Share your views in the comments
