Central bank officials kept the current rate steady in the final meeting of 2023.
The Federal Reserve concluded its final quarterly meeting this month, holding interest rates steady at 5.25-5.5% for the third time in a row in a unanimous vote. “Inflation has eased from its highs, and this has come without a significant increase in unemployment. That’s very good news,” Federal Reserve Chair Jerome Powell said.
America’s inflation rate spiked to its highest level in 40 years toward the end of the COVID-19 pandemic, spurring the Federal Reserve to increase the interest rates in an effort to slow the economy.
In 2022, the national bank increased its interest rate to its highest level in 22 years but has held interest rates steady in 2023. Fed officials expect gradually cutting interest rates in the new year. If the economy continues to stabilize, the Federal Reserve anticipates that interest rates could be lowered back to a steady 2-2.25% as early as 2026.
As the Lord Leads, Pray with Us…
- For wisdom for Chairman Powell as he heads the Federal Reserve.
- For members of the Federal Reserve as they analyze the state of the economy.
Sources: CNBC, NY Times
