U.S. Federal Reserve Keeps Interest Rates Steady, Signals Three Rate Cuts This Year

Published: 21 March 2024 at 00:34

The U.S. Federal Reserve has maintained its key interest rate steady at 5.25-5.5% for the fifth consecutive time, citing expanding economic activity and moderate inflation. The Federal Open Market Committee signaled three rate cuts this year, with a forecast of 75 basis points of rate cuts in 2024 to 4.6%. The median forecast for 2024 U.S. economic growth has increased to 2.1% from 1.4%, while PCE inflation remains at 2.4%. Fed Chair Jerome Powell noted that inflation, although easing, remains above the 2% target, and the Fed is committed to achieving that goal.

SOURCES

Federal Reserve votes to hold interest rates steady

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