Reported 7 months ago
The US Federal Reserve (Fed) announced to keep interest rates unchanged at 5.25%-5.5%, matching market expectations, marking the 7th consecutive hold since last September and maintaining the highest level in nearly 23 years. Despite lower-than-expected May consumer price index, Fed Chair Powell stated no confidence in rate cuts yet as inflation, now decreased from 7% to 2.7%, remains high. The 'dot plot' predicts only 1 rate cut this year, lower than the previous 3 expected in March, with a total of 5 cuts expected by 2025, reaching 4.1% by the end of next year. Powell mentioned the recent strong job data might be exaggerated and Fed's attitude is hawkish-leaning.
Source: YAHOO