Fed holds rates steady, indicates it is not ready to start cutting
Last edited Wed Jan 31, 2024, 04:34 PM - Edit history (1)
Source: CNBC
Published Wed, Jan 31 2024 2:00 PM EST Updated 20 Min Ago
WASHINGTON — The Federal Reserve on Wednesday sent a tepid signal that it is done raising interest rates but made it clear that it is not ready to start cutting.
In a substantially changed statement that concluded the central bank’s two-day meeting this week, the Federal Open Market Committee removed language that had indicated a willingness to keep raising interest rates until inflation had been brought under control and was on its way toward the Fed’s 2% inflation goal.
However, it also said there are no plans yet to cut rates with inflation still running above the central bank’s target. The statement further provided limited guidance that it was done hiking, only outlining factors that will go into “adjustments” to policy.
“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 percent,” the statement said.
Read more: https://www.cnbc.com/2024/01/31/fed-rate-decision-january-2023.html
Article updated.
Original article -
WASHINGTON -- The Federal Reserve on Wednesday sent a tepid signal that it is done raising interest rates but made it clear that it is not ready to start cutting.
In a substantially changed statement that concluded the central bank’s two-day meeting this week, the Federal Open Market Committee removed language that had indicated a willingness to keep raising interest rates until inflation had been brought under control and was on its way toward the Fed’s 2% inflation goal.
However, it also said there are no plans yet to cut rates with inflation still running above the central bank’s 2% goal. The statement further provided limited guidance that it was done hiking, only outlining factors that will go into “adjustments” to policy.
“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 percent,” the statement said.
