Mikkel Rosenvold
11 weeks ago

Fed's Powell says no to lower interest rates for now

The Fed Chair, on why the Federal Reserve isn't ready to reduce interest rates just yet.
iPhone displaying the Fed's logo laying on top up a pile of US dollars.
Poetra.RH, Shutterstock

Jerome Powell, the head of the Federal Reserve, has made it clear that the Federal Reserve is not in a hurry to cut interest rates, writes CNBC.

He testified in congress yesterday, stressing that the Fed wants to be sure inflation is consistently moving towards their 2% goal before making such a move.

Powell pointed out that dropping rates too soon could make it harder to keep inflation under control. Even though he believes that interest rates might not go any higher in this cycle, any decision to ease up will be based on new data, given how uncertain the economy is right now.

Despite not moving towards rate cuts yet, Powell recognized the strides towards reducing inflation, with a significant slowdown in the rise of prices for both goods and services.

Although, Powell primarily reiterated sentiments from the press conference at the latest Federal Open Market Committee (FOMC) meeting, the stock market reacted favorably as he talked. There was a small drop in the cost of borrowing for the government, indicating investors felt reassured about a steady approach to managing the economy.

Meanwhile, however, gold hit a record peak, reports Reuters, arguing that the value of the metal frequently increases whenever interest rates are low.


The information provided by this Site is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.

More News

5 hours ago Israeli Airstrike Hits Rafah Tent Camp Israeli airstrike on Rafah camp kills dozens, raising international alarm.
5 hours ago Meta and Call of Duty Maker Sued by Families of School Shooting Victims Families of the 2022 Uvalde school shooting victims file lawsuits against major corporations and officials, claiming they contributed to the tragedy.
7 hours ago Walmart and Capital One Call It Quits on Partnership Walmart and Capital One announce the end of their six-year card partnership amidst legal disputes.
8 hours ago US Market Open - May 27, 2024: Wall Street Wavers but Nasdaq Soars Daily update from the US market open.
10 hours ago Crypto, Currently: May 27, 2024 - Ethereum Leads Weekly Surge, Bitcoin Holds Steady Daily update on Ethereum, Bitcoin, and more!
1 day ago Debunking the headline: US GDP grows by a third ahead of EU in 15 years Europeans need not worry as much as these articles would suggest.
1 day ago Empowering Women Could Boost Economic Growth, Says IMF Economists Discover how gender equality initiatives could transform economies in Japan and Korea.