The Fed is expected to keep rates steady
The US Federal Reserve on Wednesday kept its interest rates unchanged for the fifth straight time. However, it expects to cut rates by two more times in 2024 and said that it isn’t expected to reduce rates until it has ” gained greater confidence” that inflation is moving towards 2%. The unemployment rate has remained below 4% for more than two years.
The fight against inflation isn’t over yet, despite the steady interest rates held by the Fed
The US Federal Reserve has said it would consider the ” lags with which monetary policy affects economic activity and inflation” when it decides whether to raise rates next week. Since March of last year, the US central bank has raised its benchmark rate 11 times, pushing it to its highest level in over 20 years.