Fed keeps interest rates steady
Updated 7/31/2024 10:48:00 PM
Arab Finance: The Federal Reserve held its key interest rate steady at its monetary policy meeting on July 31st, but hinted at a possible rate cut as soon as mid-September due to easing inflation and a cooling job market, as per a statement.
"The broad sense of the committee is that the economy is moving closer to the point where it will be appropriate to reduce our policy rate,” Fed Chair Jerome Powell stated as reported by CNBC reported.
The Fed's statement highlighted commitment to having inflation rate back to its 2% objective.
The Fed also noted that job gains have moderated and the unemployment rate has moved up but remains low.
The Fed expressed a balanced concern over inflation and unemployment, indicating that the risks to achieving its employment and inflation goals continue to move into better balance.
From March 2022 to July 2023, the Fed raised its key rate from near zero to a 23-year high of 5.25% to 5.5% to combat the largest inflation spike in 40 years.
The rate has remained unchanged over the past year as consumer price increases have moderated.
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