Caricatures and drawings on Forex portal
Federal Reserve holds its ground on interest rates
The American regulator is pleasing the market with its monetary steadiness. For the sixth time, the Fed kept the key rate at 5.25%–5.5%.
The Federal Open Market Committee (FOMC) has a long-term goal to achieve 2% inflation. However, there has been no progress yet.
Looking ahead, the Fed plans to reduce its holdings of Treasury securities and agency debts. Starting in June, the regulator will slow down these reductions and lower the monthly cap on Treasury bond redemptions from $60 billion to $25 billion. The cap on agency debt and agency-backed mortgage securities repayments will stay at $35 billion.
Notably, in July 2023, the Fed raised the interest rate by 25 basis points, reaching 5.25%–5.5%. The rate, the highest since 2001, has remained elevated since then.
Published 08 May 2024
© InstaFintech Group
![]()
© InstaFintech Group
