- The US Federal Reserve leaves interest rates at a range of 5.25 to 5.5 percent.
- The decision was expected.
- Interest rates remain at their highest levels in 23 years.
The Federal Reserve made the announcement on Wednesday in Washington after its interest rate committee meeting. The Fed has promised to cut interest rates this year, but it does not want to act quickly for fear that inflation will flare up again.
In May, the inflation rate fell by 0.1 percentage point to 3.3%. Therefore, there is still a long way to go to reach the inflation target set by the Federal Reserve at 2%.
legend:
The Fed does not increase interest rates.
REUTERS/Archive/Sarah Silbiger
Therefore, observers do not expect interest rates to be lowered until September. Last week, the European Central Bank was the first major central bank to cut its historically high key interest rates by 0.25 percentage points.
GDP growth unchanged
The Fed leaves its growth forecasts unchanged. She announced that the gross domestic product of the world's largest economy is expected to grow by 2.1 percent this year. This is consistent with March estimates. The Fed expects 2% growth next year, as was the case in March as well.
Since March 2022, the central bank has raised its key interest rate by more than five percentage points at a record pace in the fight against inflation. But lately, you no longer run the screw on your interest rate. The inflation rate – which exceeded nine percent in the summer of 2022, the highest level in nearly four decades – has fallen significantly since the interest rate increase.
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