Rural Radio Network on Nostr: Fed holds interest rates steady, but cut expected soon ========== The Federal Reserve ...
Fed holds interest rates steady, but cut expected soon
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The Federal Reserve maintained its benchmark interest rate on Wednesday, keeping borrowing costs at their highest level in more than two decades despite a prolonged cooldown of inflation. An interest rate cut is widely expected in the coming months. Economists expected the Fed to leave interest rates unchanged on Wednesday to ensure current trends hold ahead of its next meeting in September. The chances of an interest rate cut in September stand at more than 85%. Price increases have slowed significantly from a peak of more than 9%, though inflation remains a percentage point higher than the Fed’s target rate of 2%. The labor market has continued to grow but its breakneck pace has cooled. The unemployment rate has ticked up this year from 3.7% to 4.1%. The Fed is guided by a dual mandate to keep inflation under control and the labor market strong. The U.S. economy grew much faster than expected over three months ending in June, accelerating from the previous quarter and defying concerns about a possible slowdown. If the Fed cuts interest rates as the economy is heating up, the central bank risks rekindling rapid price increases.
#FederalReserve #InterestRates #Inflation #Economy #Unemployment
https://ruralradio.com/bull/abc_news/fed-holds-interest-rates-steady-but-cut-expected-soon-abcid6fd6fb97/
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The Federal Reserve maintained its benchmark interest rate on Wednesday, keeping borrowing costs at their highest level in more than two decades despite a prolonged cooldown of inflation. An interest rate cut is widely expected in the coming months. Economists expected the Fed to leave interest rates unchanged on Wednesday to ensure current trends hold ahead of its next meeting in September. The chances of an interest rate cut in September stand at more than 85%. Price increases have slowed significantly from a peak of more than 9%, though inflation remains a percentage point higher than the Fed’s target rate of 2%. The labor market has continued to grow but its breakneck pace has cooled. The unemployment rate has ticked up this year from 3.7% to 4.1%. The Fed is guided by a dual mandate to keep inflation under control and the labor market strong. The U.S. economy grew much faster than expected over three months ending in June, accelerating from the previous quarter and defying concerns about a possible slowdown. If the Fed cuts interest rates as the economy is heating up, the central bank risks rekindling rapid price increases.
#FederalReserve #InterestRates #Inflation #Economy #Unemployment
https://ruralradio.com/bull/abc_news/fed-holds-interest-rates-steady-but-cut-expected-soon-abcid6fd6fb97/