Fifth successive pause in its fluctuations was struck by the US Federal Bank (), as announced on Wednesday (20.3.2024), after the end of the two-day meeting. Fed’s interest rates remained in high two decades, ranging between 5.25% – 5.5%, as they had been formed since last July during the last move to tighten monetary policy by the officials of the competent Commission. The Fed announced that it expects no reductions in interest rates until it becomes more confident that inflation is moving steadily towards the 2% target. Fed officials move towards three interest rate reductions within 2024. For 2025 three reductions are expected, one less than the previous estimate, and another three reductions in 2026. Its main interest rate is about 2.6%, which still requires two reductions after 2026. Forecasts for growth, unemployment, inflation Fed officials upgraded their GDP growth forecasts this year and now predict the economy to run at an annual rate of 2.1%, from the 1.4% estimate in December. The unemployment rate forecast moved slightly below the previous estimate at 4%, while the inflation forecast (PCE), as measured by personal consumer spending, increased to 2.6%, increased by 0.2% before, but slightly below the most recent level of 2.8%. The unemployment rate in February was 3.9%. The outlook for GDP also gradually increased over the next two years while PCE is expected to return to the target by 2026, as in December.
US: Keeps interest rates frozen for the 5th consecutive month Fed – Three reductions come within 2024
—