The Federal Reserve decided to leave interest rates unchanged. The cost of money remains stuck in a range between 5.25% and 5.5%, its highest level in 22 years. For the US Central Bank, this is the second “pause” since June in its campaign to raise interest rates. Restrictive policy is necessary to combat accelerating inflation. However, at the same time, the Fed indicated that a new increase in interest rates is expected in the fourth quarter of 2023. “We will do so if it is appropriate,” central bank Chairman Jerome Powell said in a press conference, stressing that the Fed The Fed “will do whatever is necessary to achieve its mandate goals, specifically price stability and maximum employment.” the A type of statistical graph, that is, the tables containing the Board members’ expectations about the trend in the cost of money, indicate that 12 members of the Fed expect another tightening, compared to seven who focus instead on the status quo. Meanwhile, there is good news for Joe Biden. According to the US Central Bank, in 2023 the US economy will grow by 2.1%, and not by 1% as expected in June. «Economic activity is growing at a strong pace – says the Federal Reserve -. The labor market has slowed but remains strong. “Inflation remains high.”
Image source: ANSA/Sean Theo | Federal Reserve headquarters in Washington, D.C
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