US Federal Reserve leaves rates unchanged
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The news: The US Federal Reserve has left rates unchanged for a fifth consecutive meeting.
The numbers: The Federal Open Market Committee (FOMC) voted unanimously to leave rates within the range of 5.25%-5.5%. The Committee also stated that it intends to make 0.75 percentage points worth of interest rate cuts during the year.
The context: The FOMC explained that while it expects to cut rates three times, it does not plan to begin cutting rates until it has greater confidence that inflation is moving sustainably toward its 2% target. The language echoes that used in the Fed’s January statement, which reinforces thinking that the Committee is in no rush to lower rates until they are certain of the inflation trajectory.
According to their median rate projection, policymakers see the federal funds rate reaching 4.6% by the end of 2024.
The central bank also reiterated its intention to continue reducing its balance sheet by as much as USD95 billion ($145.16 billion) per month.
The sources: US Federal Reserve, Bloomberg
