News Digest:

The US Federal Reserve held its key interest rate steady for the fifth straight meeting on March 21 while noting that it would require more inflation, jobs, and other economic data to determine when to reduce borrowing costs, which has been on an upswing for two years now, says a report.

Fed Chair Jerome Powell said the bank was still not ready to lower interest rates, which remained unchanged at 5.25% to 5.5%. Such a move was largely expected though markets reacted positively to the Fed keeping the median projections for rate cuts this year unchanged.

Takeaway:

While policymakers expect three rate cuts in 2024, Fed committee members expect fewer cuts as they want to see more evidence of inflation being reigned in at the central bank’s 2% target. The Fed forecast more upside risks than what was projected earlier due to inflation numbers in January and February holding at higher levels. However, officials felt the disinflation path could be bumpy, but the spike wasn’t a major cause for concern.

End Notes

Source: https://www.cnbctv18.com/world/us-fed-meeting-fomc-live-updates-inflation-market-influence-feds-interest-rate-decision-and-more-liveblog-19324121.htm