The Fed announces its first interest rate decision of the year

The Fed has announced its first interest rate decision of the year, which markets were eagerly awaiting.

The Fed kept its policy rate unchanged in line with expectations, holding it at the 5.25-5.50 percent range, the highest level in 23 years.

The decision statement included the following remarks:

"The Fed does not expect to lower interest rates until it has gained "greater confidence" that inflation is moving sustainably toward 2 percent.

The FOMC judges that the risks to achieving its employment and inflation goals are moving into better balance.

"Any adjustments" to interest rates will be based on incoming data, the evolving outlook, and the balance of risks.

The phrase "the extent of any additional policy firming" was removed from the monetary policy statement.

The Fed last raised interest rates in July 2023 and had held them steady for the last 3 meetings.

News Source: 12punto