US Interest Rates

Posted on | by Leon Hinde | Leave a Comment on US Interest Rates

The Fed Decision

The Fed kept rates on hold between 5.0% and 5.25%, in-line with market expectations. As for Powell’s commentary, here are some of his key comments:

    • Rate outlook: “We are prepared to maintain the current target range for longer if appropriate … If the economy evolves going forward, the appropriate level of the federal funds rate will be 4.6% at the end of this year, 3.9% at the end of 2025 and 3.1% at the end of 2026.”
    • Rate outlook: “We believe that our policy rate is likely at its peak for this time in the cycle.

    Overall – The Fed still seeks greater confidence inflation is moving sustainably down before making its first rate cut.