News Digest:

The US Federal Reserve maintained its benchmark interest rate unchanged for the seventh successive month but indicated that there could be one rate cut in 2024, down from the earlier forecast of three cuts, according to a news report.

A news report said Fed chair Jerome Powell said inflation was elevated despite having cooled over the past two months. “We will need to see more good data to bolster our confidence that inflation is moving sustainably towards 2%,” he said. The Fed, however, noted that the economy was growing at a solid pace and hiring “remained strong”.

Takeaway:

Though the rates remained unchanged, the Fed’s assessment was more positive than it was a month ago when officials noted a lack of progress. From now through 2025, the Fed Open Market Committee sees five cuts equalling 125 basis points, down from six that they had seen in March.

End Notes

Source: https://www.cnbctv18.com/market/us-fed-meeting-inflation-data-live-updates-fomc-interest-rate-decision-today-jerome-powell-dollar-liveblog-19427238.htm