Federal Reserve Keeps Interest Rates Steady As Inflation Eases Chair Jerome Powell hints at potential cuts in upcoming meetings as economic indicators show progressThe Federal Reserve opted to keep its benchmark interest rate steady on Wednesday, marking this decision as a pivotal moment in its ongoing battle against inflation. During a press conference following the Fed's decision, Chair Jerome Powell highlighted the key indicators that might dictate future interest rate actions. Historical data demonstrates that rapid hikes in interest rates usually cool down inflation but they can lead to unforeseen consequences in employment and economic growth. Former President Donald Trump has indicated that he would intervene to reduce interest rates if elected, despite the Fed's insistence on its independence from political influence. This backdrop complicates the decision-making process as officials prioritize the necessity of sustaining economic growth while curtailing inflation.

Source: Washington Post August 02, 2024 02:37 UTC