The Fed kept its key interest rate at 5.5%, contrary to market expectations
The Federal Reserve announced on Wednesday its decision to keep its key interest rate unchanged at 5.5%. The decision came as a surprise to the market, which had been expecting a larger rate cut following the recent rise in inflation.
The Fed previously predicted three rate cuts this year, but now expects only one. Although the latest data shows a decline in inflation, it still remains above the Fed's target of 2%. The central bank stressed the need for more consistent data to confirm a sustained decline in inflation.
The decision to keep rates high continues to put pressure on households already struggling with the increased cost of living.
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