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Fed Unanimously Votes to Hold Interest Rate Steady
The Federal Reserve held its key interest rate steady, following two days of discussions. Monetary policymakers voted 8-0 to retain the central bank’s benchmark short-term rate at between 1.5% and 1.75%.
Part of the reason the Fed says it is keeping the rate unchanged is because it believes inflation now is running near its target, and it doesn’t expect inflation to rise too high.
The future is less certain though, and that has policymakers divided about three planned rate hikes this year. The consensus among analysts is that another rate hike will arrive at the Fed’s June meeting. The fear is higher interest rates will work to curb inflation, but it may also slow economic growth.
The Fed indicated the economy has been growing at a moderate rate, though didn’t say the economic outlook had strengthened in recent months, as it had noted last month.
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- ◦Economy
