Inflation fell sharply last year but progress has stalled in recent months.
Wednesday, March 20, 2024 11:27AMThe Federal Reserve is set to announce anThe decision arrives roughly a week after fresh inflation datainflation ticked up in February, the latest sign that progress toward cooling prices had struck a rough patch.
The Fed is expected to leave interest rates unchanged at its meeting on Wednesday, keeping borrowing costs at their current level of between 5.25% and 5.5%, the highest level since 2001. Addressing House members at the Capitol earlier this month, Fed Chair Jerome Powell reaffirmed the Fed's plans to cut rates this year but cautioned that the central bank first wants to see inflation fall lower.
Interest rate cuts would lower borrowing costs for consumers and businesses, potentially triggering a burst of economic activity through greater household spending and company investment.But the Fed risks a rebound of inflation if it cuts interest rates too quickly, since stronger consumer demand on top of solid economic activity could lead to an acceleration of price increases.
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