USA: US Federal Reserve leaves key interest rate at high level
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The US Federal Reserve Federal Reserve (Fed) remains high for the fifth time in a row Key interest rate firmly. The Central Bank Council announced that it is still in the range of 5.25 to 5.5 percent. This is the rate at which commercial banks can borrow central bank money.
The Key interest rate remains at its highest level for 23 years. Since March 2022, the Fed has raised its key interest rate by more than five percentage points in the fight against inflation. At the same time, the Fed signaled a fall interest for the rest of 2024. It could therefore fall by 0.75 percentage points. This corresponds to three interest rate steps downwards. They therefore maintained their outlook from December.
The Fed continues to expect an inflation rate of 2.4 percent this year. This is the same value as assumed three months ago. The Fed expects an inflation rate of 2.2 percent next year. Core inflation, i.e. without taking food and energy prices into account, is expected to be 2.6 percent this year (December: 2.4 percent).
Consumer prices in the USA rose in February compared to the same month last year by 3.2 percent, after an inflation rate of 3.1 percent in January. The central bank is aiming for an inflation mark of two percent.
The US Federal Reserve Federal Reserve (Fed) remains high for the fifth time in a row Key interest rate firmly. The Central Bank Council announced that it is still in the range of 5.25 to 5.5 percent. This is the rate at which commercial banks can borrow central bank money.
The Key interest rate remains at its highest level for 23 years. Since March 2022, the Fed has raised its key interest rate by more than five percentage points in the fight against inflation. At the same time, the Fed signaled a fall interest for the rest of 2024. It could therefore fall by 0.75 percentage points. This corresponds to three interest rate steps downwards. They therefore maintained their outlook from December.
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