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US Fed still worried about inflation, no cut in policy interest rates for the seventh time in a row
US Fed: Consumer price inflation in the US continued to decline, although it still remains above 2 percent and is a cause of concern for the central bank. In the last 12 months till May, inflation has increased by 3.3 percent on an annual basis. In view of this, the Fed has decided not to cut interest rates for the seventh time in a row.
The US Federal Reserve Bank (Federal Reserve Bank) voted in favor of keeping the key policy rate unchanged at 5.25-5.50 percent in its latest monetary policy meeting. During the COVID-19 pandemic, interest rates were close to zero.
Raising interest rates is a monetary policy tool that generally helps suppress demand in the economy, helping to reduce inflation rates. The Fed said, 'We are maintaining a restrictive stance on monetary policy to keep demand in line with supply and reduce inflationary pressure. US Federal Reserve Chairman Jerome Powell said, "I will have more to say on monetary policy after a brief review of economic developments."
Consumer price inflation in the US continued to decline, although it still remains above 2 percent and is a cause of concern for its central bank. In the past 12 months through May, inflation rose 3.3 percent on an annual basis. "In recent months, there has been modest progress toward the committee's 2 percent inflation target," the US Federal Reserve said in its monetary policy statement this week.
