Federal Reserve interest rate decision for May 2024: What to expect

Rob Wile is a breaking business news reporter for NBC News Digital.

Consumers will have to be patient as they wait for price increases to meaningfully slow down, economists say. With annual inflation rates stalling above its 2% target, the Federal Reserve was expected to keep its key interest rate unchanged at between 5.25% and 5.5% — the highest level in more than a decade. Last month, the consumer price index came in at 3.5% on an annual basis, driven by rising housing costs and insurance rates, especially auto insurance.

Meanwhile, even as many consumers struggle, post-pandemic wealth gains have left others — especially older consumers — with plenty of money to spend, despite higher prices. Whatever the case, the wait for slower inflation has left the average consumer in an increasingly dour mood. On Tuesday, the Conference Board’s monthly Consumer Confidence Index came in at its lowest level since July 2022.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

NBCNewsHealth /  🏆 707. in US

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Federal Reserve Official Questions Rate Cuts in 2024A Federal Reserve official suggests that the central bank may not cut interest rates in 2024, contrary to Wall Street's expectations. The official raises doubts about the necessity of rate cuts if inflation remains stable and the economy continues to show strong growth.
Read more »

Here Are the Performers and Presenters for the 2024 CMT Music Awards2024 CMT Music Awards: All the performers and presenters at the 2024 CMTs.
Read more »

Comparison Test: 2024 Mazda CX-50 vs. 2024 Volkswagen Tiguan Split a Lot of HairsA shockingly close pairing from the most popular segment in America—compact SUVs.
Read more »

Taste Test: Comparing the 2024 Mazda CX-50 and the 2024 Volkswagen TiguanA comparison between the 2024 Mazda CX-50 and the 2024 Volkswagen Tiguan, focusing on the subjective matter of taste in choosing between the two compact SUVs.
Read more »

Ethiopia's Sisay Lemma wins 2024 Boston Marathon 2024 in runawayThe 128th Boston Marathon was held Monday, bringing tens of thousands of runners to New England for the annual race.
Read more »

Backstage at Dior Pre-Fall 2024 CollectionBackstage at the Dior Pre-Fall 2024 show at New York Fashion Week, February 2024.
Read more »