The Federal Reserve (Fed) announced it will keep interest rates “high” for a while. The decision was communicated by Jerome Powell, Fed Chairman, in a press conference. Powell also regretted that inflation was not falling at the “expected pace.”
Thus, interest rates will remain between 5.25 and 5.5 %, which have been in effect since the summer of 2023 and mark a maximum for more than two decades, making it more expensive to borrow in the United States.
NEW: 🇺🇸 Fed Chair Jerome Powell says "it's unlikely the next rate move will be a hike."
Send it...🚀 pic.twitter.com/eLhLdCX2w6
— Radar🚨 (@RadarHits) May 1, 2024
On inflation, Powell acknowledged that we are still far from the 2 % target. “It is likely to take longer for us to gain confidence that we are on a sustainable path down to 2 percent inflation. I don’t know how long it will take,” he added.
Looking ahead, the Fed chairman said it was “unlikely” that the next interest rate move would be a hike.
The Fed's announcement comes amid slower-than-expected economic growth during the year's first quarter and rising inflation marked by higher fuel prices. At the same time, the labor market reported 303,000 new jobs in March, up from 270,000 in February.
