The Federal Reserve held its interest rate target steady, in line with expectations that the timing of rate cuts has been pushed back by stubborn inflation.
After a two-day meeting of its monetary policy committee in Washington, D.C., the Federal Reserve announced that it would keep its rate target at 5.25% to 5.50%. The move was widely telegraphed.
The consensus among investors, and among the Fed, is that the central bank is done raising rates and will begin trimming them this year — the question now is when that long-awaited pivot will occur.
The Fed has held rates steady since last raising interest rates in July. The current rate target is still the highest it has been since 2006, at the outset of the global financial crisis.
The Fed’s goal is for long-run inflation to run at about 2%, a level that it considers healthy for
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