US Federal Reserve Holds Interest Rates at 5.25-5.50% Amid Stubborn Inflation

Published: 02 May 2024 at 03:18

The US Federal Reserve has maintained the benchmark lending rate at 5.25-5.50% due to inflation continuing above the 2% target. Fed Chair Jerome Powell stated that rate cuts would not occur until there is greater confidence in inflation decreasing towards the target. Despite recent inflation upticks, Powell remains optimistic about longer-term expectations. The likelihood of rate cuts by the end of 2024 is uncertain, with expectations for high interest rates to persist affecting mortgages and credit card APR. Savings rates remain high, while mortgage rates are not expected to return to pre-pandemic lows soon.

DEEP DIVE

SOURCES

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