The Fed, led by Jerome Powell, has announced that it will not be cutting interest rates until inflation slows down to 2%. Powell assured the public that there will be no increase in the Fed’s policy rate in future meetings and that a rate hike is unlikely to be the next move.
At its recent meeting, the Fed decided to maintain its key interest rate in the range of 5.25–5.50%, citing a lack of progress towards the inflation target as the reason for the decision. According to Powell, developing the necessary confidence in inflation slowing down to the 2% target will take longer than expected. In March, consumer prices in the United States rose by 3.5% year-on-year, surpassing the desired 2% level.
The central bank remains cautious about the economic outlook and inflation risks, emphasizing the need to achieve the long-term goal of 2% inflation. Overall, this decision by the Fed ensures stability and economic growth in