The Federal Reserve opted to keep the federal funds rate at the 5.25% to 5.5% level.
In a unanimous vote, the central bank’s policy making Federal Open Market Committee declared the “economic outlook is uncertain,” adding that it remained “attentive to the risks to both sides of its dual mandate.” While keeping an eye on wider economic considerations including labor market conditions, global developments and inflation pressures, the Fed would not commit to an upcoming rate cut.
“The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%,” said the central bank in a statement. “In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to returning inflation to its 2% objective.”
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Very Good! If they really want to drop inflation the rates need to stay where they are.
Ok yeah,
If keeping the rates high , thinking it will solve the inflation,
Why not raise the rates to 20 % ?
Its ridiculous to not lower rates.
Your not helping anyone!!
Your making everything worse and harder for everone!
The Congress and Both presidential candidates should approve legislation to add another mandate besides just low inflation and high employment. It would be to ensure affordable housing as its third mandate. The Fed could buy agency debt without the typical 2% spread over 10 yr treasuries to keep interest costs lower on all apartments and single family loans to help both lower income renters and owners keep housing costs down. This mandate would push the “housing component” that is currently about 1/3 of the total inflation components to lower levels thereby helping lower inflation simultaneously with providing lower rates on affordable housing loans
if we all wanted inflation to trend down quicker. then stop that 20% corporate tax cut today. take a look at employment stats for the past 3 years, that 30% corporations represent 70% of economy and employment number has being high or above expectation. and here people are wondering why Fed isn’t cutting rate.