What to expect as the U.S. Fed is set to announce its latest rate decision
BNN Bloomberg
The U.S. Federal Reserve is set to leave its key interest rate unchanged Wednesday as it seeks to guide the U.S. economy toward a “soft landing" of cooling inflation without triggering a deep recession.
The U.S. Federal Reserve is set to leave its key interest rate unchanged Wednesday as it seeks to guide the U.S. economy toward a “soft landing" of cooling inflation without triggering a deep recession.
Chair Jerome Powell and other Fed officials have made clear that they're now inclined to move more gradually and cautiously toward their goal of two per cent annual inflation. Their more deliberative approach follows the 11 rate hikes they unleashed beginning in March 2022, which substantially raised borrowing costs for consumers and businesses.
Yet with inflation pressures still underlying the economy, Powell won't be declaring victory on Wednesday, when the Fed's latest policy meeting ends. The attention of investors and economists will instead focus on what signals the Fed may send about its likely next actions.
