Unchanged as widely expected, the US Federal Reserve (Fed) kept its key interest rates in the range of 5.25%-5.55%, a record for the past 23 years, and signaled that only one cut is expected before the end of the year. the year.
This is a decision that markets have been waiting for, as inflation is still far from the 2 percent target, delaying the easing of monetary policy.
In March, officials forecast three rate cuts through 2024.
The last rate hike by the Fed was in July 2023.
The Fed raised its estimate of the “neutral” interest rate to 2.8% from 2.6% previously, Reuters reported, noting that officials believe the economy needs tighter monetary policy to fight inflation. to win.
The Fed now expects inflation to be 2.6% by the end of the year, down from 2.4% expected in March.
New projections show the US economy will grow 2.1 percent in 2024, despite a weak first quarter, and the unemployment rate will remain at its current 4 percent level until the end of the year.
“The latest indicators show that economic activity continues to grow at a steady pace. The creation of new jobs continues to be strong, and the unemployment rte has remained at a low level,” the message states.