The US Federal Reserve has again left its main interest rate unchanged. The interest rate will therefore remain between 5.25 and 5.5 percent for the time being, as announced on Wednesday.
This means interest rates remain at a 23-year high. Since July 2022, they have steadily increased or remained the same. The interest rate development is also the same in the eurozone. The value here was recently 4.5 percent and was therefore slightly lower.
A statement on the US Federal Reserve’s key interest rate said there has been a lack of “further progress” in the effort to reduce inflation to two percent.
Here you can see how the policy interest rate has developed since 2022.
Expectations have been severely dampened
Investors had priced in several rate cuts this year, but expectations had recently tempered significantly due to inflation.
The US Federal Reserve, which set the main interest rate on Wednesday evening, wants to temper price increases with a tight monetary policy line. Financial markets are now hoping for guidance from central bank chief Jerome Powell on the future path.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
