Ten rate increases were implemented in the past year. Following those successive increases, which began in March 2022, the rate currently ranges from 5% to 5.25%, the highest level since mid-2007.
The Federal Reserve (Fed) of the United States announced this Wednesday a temporary halt to the cycle of rate hikes, after the meeting of the members of the Federal Open Market Committee, due to the slight delay in inflation moderation. Therefore, the Federal Reserve has decided to take a break and will not raise interest rates this month, although it does not rule out continuing to raise them in the future if necessary.
In the past year there have been ten rate hikes. After said successive increases, which started in March 2022, the price is currently fluctuating andBetween 5% and 5.25%the highest level since mid-2007.
This week, information has been released that has tipped the balance towards the pause of the rises: year-on-year inflation fell sharply in Maynine-tenths, to reach 4%, the lowest level since March 2021.
The latest increase, of a quarter point, was announced on May 3. As it became known after the publication of the minutes of the meeting, the participants mainly spoke out insecurity on the opportunity of a further tightening of monetary policy.
According to the technical team preparing the central bank’s projections, the US economy will slow over the next two quarters and a slight recession at the end of 2023before picking up the pace and starting to recover.
Source: EITB
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