The Federal Reserve (Fed) faces stubborn inflation that has stagnated, raising concerns about where the US central bank’s policy is going.
The Fed is stuck holding a pattern that is the same as that reflected this Wednesday at the conclusion of the two-day meeting. He kept interest rates as they were, a percentage between 5.21-5.50%, the highest level in two decades, where they have been castled since July 2023, while maintaining uncertainty about when he will begin to cut rates. of interest. Investors received another bad news again.
In their conclusions, the central bank governors unanimously point out “the lack of progress” in controlling rising prices in recent months, which, after falling, has risen again even more than expected.
In their statement they insisted that this restrictive policy will be maintained until they have full confidence that inflation is moving towards 2%, the Fed’s goal. This comment was discouraging because it was deduced that this goal is further away now than it was a while ago. .
The words of Jerome Powell, president of the Fed, were confirmed that “we need great confidence that inflation is heading towards a sustained 2% and until then this policy will be appropriate,” he previously noted and confirmed in the press conference after the meeting.
