The US Federal Reserve emphasized that inflation has remained stubbornly high in recent months and said it doesn’t plan to cut interest rates until it has “greater confidence” that price increases are slowing sustainably to its 2% target. With this, US Fed has held interest rates steady for a sixth straight meeting at a 23-year high to fight price rise. The decision was taken unanimously as the Fed would keep the benchmark lending rate unchanged at 5.25-5.50 per cent, it said.
Read more: Google’s Sundar Pichai is a stone’s throw away from becoming a billionaire. Here’s why
When will there be rate cuts by US Federal Reserve?
Citing a “lack of further progress” towards its two percent inflation target, the Fed said in a statement, “The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks.”
HT launches Crick-it, a one stop destination to catch Cricket, anytime, anywhere. Explore now!
What you need to know about US inflation?
Inflation has cooled from a peak of 7.1%, as per the US Fed’s preferred measure, to 2.7%, it said.
Read more: Google outage: Users get 502 error, report issues with search engine in UK, US
What else did US Federal Reserve announce?
The Fed also said that, starting in June, it would slow the pace of decline of its securities holdings, by “reducing the monthly redemption cap on Treasury securities from $60 billion to $25 billion.”
What US Federal Reserve had said earlier on rate cuts?
Read more: Google employee’s shocking ordeal: Fired for watching protests for just ‘four minutes’
The US central bank’s latest message marks an abrupt shift in its timetable on interest rates as following its last meeting on March 20, the Fed’s policymakers projected three rate reductions in 2024, likely starting in June.
Why rate cuts by US Federal Reserve are important?
Rate cuts by the Fed would lead to lower borrowing costs for consumers and businesses and provide relief for mortgages, auto loans and credit cards as well.
Discover the pivotal moments that shaped India’s electoral journey on the Eras section of our exclusive Elections product. Access all content absolutely free on the HT App. Download now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
- ABOUT THE AUTHOR
Follow the latest breaking news and developments from India and around the world with Hindustan Times’ newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we’ve got you covered.
