Fed holds interest rates steady as 2024 cut gets more elusive
By
Zachary Halaschak
May 1, 2024 2:00 pm
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The Federal Reserve held interest rates steady Wednesday following several months of higher-than-expected inflation, with investors now not expecting a rate cut until months from now.
After a two-day meeting of its Federal Open Market Committee in Washington, D.C., the Fed announced that it will keep its rate target at 5.25% to 5.50%. The move was widely telegraphed.
Because of inflation proving sticky in the first part of the year, the timing for when the Fed might first cut interest rates has been consistently pushed back in recent weeks.
One major addition to the Fed’s policy statement is an acknowledgment that inflation has not been making progress toward the Fed’s goal as of late. The inclusion marks a more hawkish tone and could indicate that rate cuts are even further off.
“In recent months, there has been a lack of further progress toward the Committee’s 2 percent inflation objective,” the statement reads. Officials added that the Fed would begin slowing the shrinking of its balance sheet beginning in June.
more
https://www.washingtonexaminer.com/policy/finance-and-economy/2986813/fed-holds-interest-rates-steady-as-2024-cut-gets-more-elusive/
