Nick Timiraos, chief economics correspondent for the Wall Street Journal, said it would take either a spike in inflation or a rise in oil prices for the Fed to raise rates again.
of federal reserve On Wednesday, the governor kept interest rates unchanged for the sixth straight time as high inflation diminished the chances of a rate cut this year.
The widely anticipated decision would leave interest rates unchanged in the 23-year high range of 5.25% to 5.5%, amid signs that inflation has stalled or even begun to reverse. It was held in
“Inflation has eased over the past year, but remains elevated,” the Federal Open Market Committee said in a statement after its meeting.
Policymakers have approved 11 interest rate hikes in 2022 and 2023 in hopes of raising interest rates significantly and curbing inflation. cool the economy. In just 16 months, interest rates rose from near zero to more than 5%, marking the fastest pace of tightening since the 1980s.
Rising interest rates tend to raise interest rates on consumer and business loans, forcing employers to cut spending and slowing the economy. Rising interest rates have pushed the average interest rate on a 30-year mortgage above 8% for the first time in decades. Borrowing costs for everything from home equity lines of credit to auto loans and credit cards have also skyrocketed.
| ticker | safety | last | change | change % |
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| Me: DJI | Dow Jones Average | 37958.46 | +142.54 | +0.38% |
| I:Comp | Nasdaq Composite Index | 15646.215159 | -11.61 | -0.07% |
| SP500 | S&P500 | 5028.18 | -7.51 | -0.15% |
However, the rapid rise in interest rates has not stopped consumers from spending and businesses from hiring.
The labor market continues to move at a healthy pace; Employers added 303,000 people New employees in March. The number of job openings remains high, and the unemployment rate hovers around 3.8%.
This is a developing story. Please check back for the latest information.
