The inflation data is one of the important factors for the current course in US monetary policy.
(Photo: Reuters)
new York The US Federal Reserve (Fed) has kept interest rates stable for the first time in more than a year after ten consecutive hikes. At the end of the two-day meeting, the Federal Open Market Committee decided not to raise interest rates and left the key interest rate unchanged in the range of 5.0 to 5.25 percent. This was announced by the Fed on Wednesday evening in Washington.
The Fed was backed by the latest inflation data. Accordingly, the increase in consumer prices in the USA weakened noticeably in May. Consumer prices rose by 4.0 percent compared to the same month last year. In the previous month, the rate was still 4.9 percent. The current rate is the lowest since March 2021, however, inflation is still a long way off the Fed’s 2 percent target.
In the fight against high inflation, the central bank had opted for interest rate hikes of 0.75 percentage points, some of which were considerable. However, the Fed had recently slowed down the pace significantly.