Fed claims progress on inflation but indicates plans for just one rate hike this year
By
Zachary Halaschak
June 12, 2024 2:00 pm
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Federal Reserve officials said Wednesday that they have seen progress in bringing down inflation and indicated that they plan to raise interest rates once this year.
The updates came after a two-day meeting of the Federal Open Market Committee in Washington, at which the Fed announced it would keep its rate target at 5.25% to 5.50%. The move was widely telegraphed.
Because inflation has proven sticky in the first half of the year, the timing for when the Fed might first cut interest rates has been consistently pushed back since the start of 2024. At times, the possibility of no interest rate revisions this year looked like it could become a reality.
In its policy statement about the move, Fed officials said there has been “modest” further progress in bringing down inflation in recent months. Officials were split on where interest rates will be by the end of the year, with most, though not all, thinking there will be at least one rate cut this year.
“Today the [Fed] decided to leave our policy interest rate unchanged and to continue to reduce our securities holdings,” Fed Chairman Jerome Powell said at a news conference. “We are maintaining our restrictive stance of monetary policy in order to keep demand in line with supply and reduce inflationary pressures.”
more
https://www.washingtonexaminer.com/policy/finance-and-economy/3039547/fed-holds-interest-rates-steady-for-seventh-meeting-in-a-row/
