“US Federal Reserve Keeps Policy Rate Unchanged Amidst Rate Hike Expectations”

Jerome Powell, the Chairman of the US Federal Reserve, announced a significant decision regarding monetary policy. The Federal Reserve has chosen to keep the policy rate unchanged at its current level of 5.5%, in accordance with the expectations of financial analysts.

Within the bank’s monetary commission, 12 out of 19 members are currently in favor of another policy rate increase by the end of 2023, indicating a clear intention to make further adjustments to monetary policy based on economic conditions.

Additionally, the latest forecasts for 2024 show a notable change in the pace of discount rate reductions. The previous plan involved implementing four rate reductions per year, but this has now been adjusted to a more gradual rate of two reductions annually. This shift in strategy reflects a cautious approach to monetary policy adjustments, likely driven by the Federal Reserve’s assessment of the economic landscape and its goals for maintaining economic stability.