Federal Reserve expected to retain current interest rates in October meeting
2023.10.31 06:57
In the latest two-day meeting that will conclude on Wednesday, Federal Reserve officials, including Chair Jerome H. Powell, are anticipated to maintain the present interest rates, set between 5.25% and 5.5%. This decision aligns with the Federal Reserve’s inflation control strategy, which aims to cool the economy by slowing demand and hiring through higher borrowing costs.
The current rate, which is the highest in 22 years, has been raised from near-zero levels since early 2022. The policy decision and Powell’s news conference will offer insights into potential future economic strategies. These may include the possibility of a quarter-point interest-rate move later this year or next.
The Fed’s inflation control strategy is nearing a point where further increases in interest rates may not be necessary. This aligns with the Fed’s objective of controlling price increases and bringing inflation back to their 2% target.
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