Reported about 1 year ago
The US Federal Reserve (Fed) announced its decision to keep interest rates frozen for the 7th consecutive time at the current 23-year high of 5.25% to 5.5%, with a prediction of only one interest rate cut this year. Despite slowing inflation data, Fed Chair Powell mentioned a lack of confidence in cutting rates. By maintaining the high rates, the Fed aims to reduce consumer demand for goods and services to slow down price growth. Analysts estimate the rate cut might happen before the US November elections due to the Fed's unchanged stance on rates and lower-than-expected Consumer Price Index (CPI) growth, leading to record highs for the S&P 500 and Nasdaq indices.
Source: YAHOO