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On Wednesday, the Federal Reserve decided to keep its key interest rate unchanged at 5.25%. This pause follows a recent uptick in inflation earlier in 2024. Markets were hoping for two rate cuts, but the Fed scaled back to just one. This decision might frustrate investors who expected more aggressive cuts after encouraging inflation data earlier. Also Read: U.S. inflation drops to 3.3%, beating forecasts In a statement after its two-day meeting, the central bank said it recognized some gains in its ongoing fight to control inflation. Inflation has been a huge challenge for Americans over the past three years. “In recent months, there has been modest further progress toward the Fed’s 2 percent inflation objective,” the statement reads. Fed makes low progress toward inflation goals Back in May, the Fed noted a lack of progress in curbing price increases. However, recent data showed inflation cooling more than expected. Despite this, the central bank reiterated that it doesn’t see it fit to reduce the target range until it gains more confidence that inflation is moving sustainably toward its 2% goal. Currently, inflation runs at about 3% to 3.5%. Fed Chair Jerome Powell emphasized the need for more solid data to boost confidence that inflation is on a sustainable path to 2%. “We want to see more good data to bolster our confidence that inflation is moving sustainably toward 2%,” Powell said. Source: US Bureau of Labor Statistics The inflation report on Wednesday showed some promising signs. Overall, inflation was flat in May. Powell acknowledged this progress, stating, “We see today’s report as progress and building confidence. This is a step in the right direction but it really is only one reading.” He added, “We hope we get more like it.” Crypto markets face volatility after US economic data In an…

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Filed under: News - @ June 13, 2024 12:24 am