The US Federal Reserve has kept the key rate at 5.5%. Jerome Powell believes that the rate is currently high enough and inflation is decreasing.
According to Powell, the Fed does not plan to raise the rate now. But it was not without ambiguity: there are risks both in keeping rates too high for too long and in lowering them too quickly too early.
☄️ Highlights:
🟡 It is unknown how much time is needed to start lowering the rate.
🟡 The rate will be lowered when confidence in further inflation reduction in the US returns.
🟡 Inflation data this year is higher than expected.
🟡 The Fed will not take into account political events when making decisions. It will do what it deems necessary.
🟡 It is unlikely that the rate will be raised at the next meeting.
We are awaiting the next meeting with a positive news background 🤞🔼
#inflation #FOMC #interestrates
