The Fed will not cut interest rates for the time being

The Federal Reserve (Fed) has made it clear that it will not cut interest rates until it is certain that inflation is falling sustainably towards the 2% target, according to the minutes of its last meeting held at the end of January and published on February 21.

Members of the Federal Open Market Committee (FOMC), also known as the FOMC, unanimously agreed that it would not be appropriate to cut rates until they had greater confidence that inflation was moving sustainably towards 2%.

At the meeting of the US regulator on 30 and 31 January, it was decided to keep the rates in the range of 5.25% to 5.5%, the highest level since 2001. FOMC members discussed inflation and noted that although prices had declined over the past year, they remain concerned. They will therefore carefully evaluate incoming economic data to determine whether inflation is declining in a sustainable manner.

On February 13, it was reported that the inflation rate in the United States fell again in January, after having risen in December, and fell three-tenths to 3.1%. Underlying inflation, a key figure that the Federal Reserve analyzes for making interest-rate decisions, remained at 3.9% year-on-year.

In short, the Fed is closely monitoring inflation and commits to returning it to the 2% target, but only when it is certain that the trend is sustainable.

K. Tovar

Source: Diario Las Américas

(Reference image source: @Themoneypost_, X)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram