Fed Interest Rate Decision
According to the statement made by the Fed, the interest rate has been kept constant. The decision was taken unanimously. The latest data show that economic activity continues to expand at a strong pace. Employment growth has slowed, unemployment has increased but is still low. Inflation has declined but is still high. The Fed has decided to keep the policy rate constant in order to achieve its goals.
Remarks from Powell
Fed Chairman Jerome Powell stated that confidence in inflation has increased and the labor market is strong. He stated that they may make an assessment of the interest rate cut in September. Powell stated that if confidence increases that inflation is moving towards the target, the interest rate cut may be on the agenda.
Powell stated that the policy rate is approaching a point where it will be necessary to lower it, but that no decision has been made yet. He emphasized that the path ahead for the bank depends on the course of the economy and that decisions will be made based on the integrity of the data.
Summary
- The Fed decided to keep interest rates steady.
- Economic activity continues to expand strongly.
- Inflation remains at high levels.
- Jerome Powell stated that they may evaluate the interest rate cut in September.
- The Fed’s policy rate was last increased in July 2023.
| Meeting Date | Interest rate |
|---|---|
| July 2022 | 5.25% |
| January 2023 | 5.50% |
| July 2023 | 5.50% |
