Fed Keeps Interest Rates at 23-Year High

The Federal Reserve on Wednesday, June 12, announced that its benchmark lending rates remain at the current level.

Fed Keeps Interest Rates at 23-Year High

It is worth noting that this is the seventh time that the central bank of the United States has made a decision that fixes the absence of any changes to the specified indicator. For residents of the country, the current Fed’s monetary policy concept means that the cost of borrowing remains high. This state of affairs affects all industries and spheres of activity and services, including mortgages and car loans.

Officials at the central bank of the United States currently predict just one interest rate cut in 2024. It is worth noting that in March they expected that three similar actions would be committed this year. Fed officials also predict that inflation in 2024 will be more stable compared to their estimate formed in the spring.

The United States financial regulator has kept interest rates at a 23-year high for almost a year. It is worth mentioning that the Fed began implementing a strategy of aggressively raising interest rates in March 2022.

The central bank of the United States intends to begin easing monetary policy, which implies lowering the cost of borrowing, only when there is strong evidence that inflation is on a steady slowdown trajectory and will not show sudden growth. Currently, there are not enough signs that the right moment has come for cutting interest rates.

The United States financial regulator said there has been modest further progress in recent months towards achieving the 2% inflation target. It is worth noting that in May, the Fed claimed that there were no improvements in the framework of the mentioned process.

As we have reported earlier, ECB Cuts Rates.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.