The Fed decided to keep interest rates steady in anticipation of a spike in inflation

Interest rates will remain in the 4.25 % to 4.5 % range for the coming months, Federal Reserve Chairman Jerome Powell announced last week.

The decision was made on Wednesday, June 18, in anticipation of a possible spike in inflation for the rest of the year.

Powell defended the Fed’s position, stating: “We expect significant inflation in the coming months, and we need to take that into account. […] We’ll make smarter and more informed decisions if we wait a couple of months or as long as it takes to get a sense of what the real impact of this inflation will be and what the effects on spending and hiring will be.”

The Fed chairman insisted that the country is prepared to respond to potential macroeconomic disruptions.

M.Pino

Source: pressdigital

(Reference image source: Marek Studzinski on Unsplash)

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