Federal Reserve Holds Key Rate Steady, Providing Reprieve to Consumers as Officials Continue to Battle High Inflation
"Fed holds key rate steady, signals 2 more hikes likely this year as inflation battle continues"
Yesterday, the Federal Reserve made the decision to hold its key rate steady, signaling that two more increases are likely this year as officials continue to battle high inflation. This decision leaves the benchmark rate at a range of 5% to 5.25%, marking the first meeting at which the central bank hasn’t raised its federal funds rate since January 2022.
The Fed’s decision to stand pat is set to provide a reprieve to consumers who have been hit with steady increases in rates for credit cards, adjustable-rate mortgages, and other loans. Yet Americans, especially seniors, have benefited from the hikes by finally reaping higher bank savings yields after years of meager returns.
The central bankers said they will take another six weeks to see the impacts of policy moves as the Fed fights an inflation battle that lately has shown some promising if uneven signs. The decision left the Fed’s key borrowing rate in a target range of 5%-5.25%.
