ECONOMIC BOOM or BUST? Fed's Latest Stance on Interest Rates
Breaking: The Federal Reserve made a decision about its key interest rate after its first meeting of the year. They chose to keep the rate the same for the fourth time in a row --meaning it will stay between 5.25% and 5.5%, unchanged since July.
While this means the interest rate remains at a high level, it shows that the Federal Reserve is happy with how things are going in controlling inflation. However, they are still keeping an eye on things and haven't decided on cutting rates in the coming months.
Many people think the Federal Reserve might reduce rates sometime in 2024, but that remains to be seen.
Even though the overall inflation in the US went up to 3.4% in December, the Federal Reserve's preferred measure of inflation, which doesn't include food and energy, stayed below 2% for two months in a row, giving hope that the Fed's can reach its inflation target.
Recent data from the Bureau of Economic Analysis showed that the economy grew at a rate of 3.3% in the last quarter of 2023, which is better than what people expected. The Federal Reserve's decision to keep the interest rate the same shows they are happy with the progress in the economy.
The next meeting of the Federal Open Market Committee, where they decide on interest rates, is scheduled for March 19-20, where they will also release the first of four economic projections for the year.