This Wednesday, the Fed announced through an official statement that the United States will maintain interest rates between 5.25 % and 5.5 %.

The body indicated that “in considering any adjustment to the price of money, the Committee will carefully evaluate the incoming data, the evolution of the outlook and the balance of risks.”

The country’s central bank highlighted a slight decline in inflation over the past year; However, this indicator remains high, so more advances in the matter are required.

In addition, the Fed clarified that it does not consider it appropriate to reduce the target range until there is reliable evidence that inflation “is moving sustainably toward 2 %.”

With respect to economic activity, there are indications that it is maintaining solid expansion. The moderation in job creation does not affect the unemployment rate, which remains downward.

GDP experienced annualized growth of 2.8 % during the second quarter of 2024. For its part, “the personal consumption expenditure price index, the Fed’s preferred statistic to monitor inflation, stood at 2.5 % in June, one tenth less than the previous month. The monthly rate recorded a rebound to 0.1 % from the previous stagnation.”

M.Pino

Source: americaeconomia

(Reference image source: Colin Watts in Unsplash)

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