𝗙𝗲𝗱𝗲𝗿𝗮𝗹 𝗥𝗲𝘀𝗲𝗿𝘃𝗲 𝗞𝗲𝗲𝗽𝘀 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗥𝗮𝘁𝗲𝘀 𝗨𝗻𝗰𝗵𝗮𝗻𝗴𝗲𝗱
The Federal Open Market Committee kept the interest rate between 3.5% and 3.75%. This is the first policy review under Federal Reserve Chair Kevin Warsh.
Key facts from the meeting:
- Policymakers reached a unanimous decision to maintain current rates.
- Eighteen out of 19 officials project at least one rate increase before the end of the year.
- The central bank removed forward guidance regarding future interest rate paths.
- The Federal Reserve raised its inflation outlook.
- The Personal Consumption Expenditures price index forecast rose to 3.6% by the end of 2026.
- Inflation is not expected to reach the 2% target before 2028.
- Economic activity shows solid growth despite Middle East conflicts.
- Unemployment rates remain stable.
Current inflation sits at a three-year high of 4.2%. Higher energy costs contributed to this increase.
Source: The Times of India