SEE SUMMARY
The United States Federal Reserve (Fed) maintained interest rates in their current range of 5.25% to 5.5%, and considered the possibility of cutting them in the remainder of the year, one less than expected. Fed Chairman Jerome Powell noted the need for greater confidence in inflation, which remains stagnant above the 2% target. Despite high interest rates, the Consumer Price Index (CPI) decreased one tenth in May to 3.3%, while core inflation was 3.4%, the lowest figure since April 2021 The members of the Federal Open Market Committee (FOMC) made this decision after a two-day meeting, with expectations of growth of 2.1% in the Gross Domestic Product (GDP) and unemployment of 4% in an active labor market. .
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The United States Federal Reserve (Fed) announced this Wednesday that it maintains interest rates at their current range of 5.25% to 5.5%; and contemplated a possible cut in the remainder of the year, one less than expected until now.
“When considering any adjustment, the Committee will carefully monitor incoming information, the outlook and the balance of risks,” said the US regulator after leaving rates at their highest level since 2001.
The members of the Federal Open Market Committee (FOMC, in English), the body in charge of deciding whether or not to raise rates, made this decision at the end of a two-day meeting.
“We need more confidence about inflation and of course better inflation data will be helpful,” said Jerome Powell, president of the Fed, who refused to say whether the quarter-point drop could arrive in September.
The Fed has four more meetings scheduled for the remainder of the year, while macroeconomic data projections remain relatively stable, with Gross Domestic Product (GDP) growing at 2.1% and unemployment at 4%. with a labor market that continues to hire.
The Consumer Price Index (CPI) of the United States fell one tenth in May to 3.3% compared to April’s data, meaning that the data has been stagnant all year above the Reserve’s 2% objective Federal despite high interest rates.
In the last 12 months, the increase in core inflation, which excludes volatile energy and food prices, was 3.4%, two tenths below the April data, and the lowest data since April 2021 .
