Reported 7 months ago
The Federal Reserve decided to maintain interest rates on hold and postponed potential rate cuts until possibly December, projecting only a single quarter-percentage-point reduction for the year. This adjustment in rate cut outlook, from three quarter-percentage-point reductions projected in March, comes despite acknowledging modest progress towards its 2% inflation target. Federal Reserve Chairman Jerome Powell noted that a single rate cut would not significantly impact the U.S. economy, emphasizing the importance of the policy path. Market reactions included the S&P 500 extending its rally, while bond yields ticked higher and the dollar index decreased.
Source: YAHOO