They leave the door open for future rate hikes.
The Federal Reserve determined to keep its benchmark interest rate at about 5.4 percent this past week, the highest level in 22 years. Reserve officials did not raise the rate in their previous meeting either, but they maintain that future rate hikes are possible if inflation accelerates in the coming months.
The Federal Reserve stated, “Tighter financial and credit conditions for households and businesses are likely to weigh on economic activity.”
Fed Chairman Jerome Powell indicated that policymakers at the central bank recognize the prior rate hike effects have yet to be fully felt in the economy, and they need additional time to assess the impact of the increased interest rate.
Chairman Powell said that slowing the rate hikes “is giving us a better sense of how much more we need to do, if we need to do more.” He added, “The good news is we’re making progress. The progress is going to come in lumps and be bumpy, but we are making progress.”
As the Lord Leads, Pray with Us…
- For Chairman Powell to be led by the Lord as he heads the Federal Reserve.
- For members of the Federal Reserve to be discerning regarding inflation and interest rates.
- For Americans who have been struggling between the high cost of living and the increased interest rates.
Sources: Washington Times, Wall Street Journal
