The decision came in line with investors' expectations to maintain interest rates again.
(Reuters)
The US Federal Reserve voted on Wednesday to keep interest rates at their highest level in 23 years at its fifth consecutive meeting, indicating that it still expects to make three interest rate cuts this year.
The central bank said in a statement that its decision to keep the key lending rate between 5.25 percent and 5.50 percent allows policymakers to “carefully evaluate incoming data, evolving expectations, and balance risks.”
This decision was in line with investors' expectations to maintain interest rates again at the end of the March meeting, according to Reuters.
Despite ongoing concerns about inflation and economic growth, the Fed chose to wait for more data before making any adjustments.
An updated economic forecast from Fed officials suggests fewer interest rate cuts are expected in the coming years than previously estimated, with slightly higher expectations for longer-term interest rates.
Updated economic forecasts from Federal Reserve officials indicate fewer expected interest rate cuts in the coming years (Reuters)
While economic growth is expected to be strong, concerns remain about persistent inflationary pressures in sectors such as housing and services.
The labor market remains strong, but any unexpected weakness could lead to a shift in monetary policy, according to Chicago Fed President Austin Goolsbee, who spoke to Reuters.
Although consumer spending is still recovering, it has moderated recently, influenced by factors such as weather conditions.
Source: Al Jazeera + agencies