Fed keeps interest rates unchanged for first time in 15 months, but signals 2 more potential hikes this year
WASHINGTON — The Federal Reserve kept its key interest rate unchanged Wednesday after having raised it 10 straight times to combat high inflation. But in a surprise move, the Fed signaled that it may raise rates twice more this year, beginning as soon as next month.
The central bank’s 18 policymakers envision raising its key rate by an additional half-point this year, to about 5.6%, according to economic forecasts they issued Wednesday. Listen now and subscribe: Apple Podcasts | Google Podcasts | Spotify | RSS Feed | Omny Studio | All Of Our Podcasts Business What you should know as the Fed nears the peak of its rate-hiking cycle The central bank’s rate hikes have coincided with a steady drop in consumer inflation, from a peak of 9.1% last June to 4% as of May. But excluding volatile food and energy costs, so-called core inflation remains chronically high. Core inflation was 5.
The 18 members of the committee have appeared divided between those who favor one or two more rate hikes and those who would like to leave the Fed’s key rate where it is for at least a few months and see whether inflation further moderates. This group is concerned that hiking too aggressively would heighten the risk of causing a deep recession.
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 Is Likely To Leave Rates Alone — For NowThe Federal Reserve is poised to allow time to gauge the impact of its aggressive drive to tame inflation.
Read more »
The Federal Reserve will likely leave interest rates alone for the first time in 15 monthsThe Federal Reserve, having raised interest rates at the fastest pace in four decades, is poised Wednesday to leave rates alone for the first time in 15 months to allow time to gauge the impact of its aggressive drive to tame inflation
Read more »
The Federal Reserve will likely leave interest rates alone for the first time in 15 monthsThe Federal Reserve, having raised interest rates at the fastest pace in four decades, is poised Wednesday to leave rates alone for the first time in 15 months to allow time to gauge the impact of its aggressive drive to tame inflation
Read more »
The Federal Reserve Will Likely Leave Interest Rates Alone for First Time in 15 MonthsThe Federal Reserve, having raised interest rates at the fastest pace in four decades, is poised to leave rates alone for the first time in 15 months to allow time to gauge the impact of its aggressive drive to tame inflation.
Read more »
Inflation lowest since 2021 before pivotal Federal Reserve meetingOne-year inflation expectations are down 0.3%, dropping to a 4.1% rate — the lowest annual outlook since May 2021, according to the New York Fed’s Survey of Consumer Expectations in May.
Read more »