US Federal Reserve holds interest rates steady

Economy

Published: 2024-02-01 09:34

Last Updated: 2024-04-17 04:45


US Federal Reserve holds interest rates steady
US Federal Reserve holds interest rates steady

The US Federal Reserve kept interest rates unchanged during its Wednesday meeting, the first meeting of the Federal Open Market Committee (FOMC) for the year 2024, within the range of 5.25 percent to 5.5 percent. This marks the fourth consecutive time the feds keep the interest rate stable.

Last December, the Federal Reserve revised down its expectations for the core inflation rate in 2024 to 2.4 percent, compared to previous projections of 2.5 percent in September. It also lowered its inflation rate expectations for 2023 to 2.8 percent, down from the previous 3.3 percent forecast.

As for the Consumer price index (CPI), the Federal Reserve's outlook suggests a continued decline in 2025 and 2026, with expectations to reach 2.1 percent and 2 percent, respectively.

Expectations for economic growth were slightly reduced for 2024 to 1.4 percent, compared to earlier projections that indicated 1.5 percent.