- The US Federal Reserve will keep interest rates unchanged
The U.S. central bank, the Federal Reserve, has kept the interest rate at its highest level in over 20 years, as expected. It remains within the range of 5.25 to 5.5 percent, as announced by the Federal Open Market Committee in Washington. Businesses can borrow money from the central bank at this rate.
The central bank of the world's largest economy has raised its interest rate by more than five percentage points since March 2022 in an aggressive bid to combat inflation. However, it has not tightened monetary policy further in recent decisions.
In the U.S., inflation has eased recently, giving the Federal Reserve more room to maneuver for interest rate cuts. At the same time, there are signs that the economy is cooling in some areas, and lower interest rates could help stimulate it.
The aggressive interest rate increases by the Federal Reserve have made borrowing money more expensive for businesses and individuals. In lighter economic conditions, a decrease in the interest rate could encourage spending and investment.
