- The Federal Reserve has left interest rates unchanged for the sixth straight meeting, sticking with the pause in rate hikes since September 2023.
- Though inflation has declined from peaks in 2022, it remains above the Fed’s 2% target at 3.1% in February. The Fed has been battling high inflation for two years, seeking to avoid recession.
- Experts predict the Fed could start cutting rates within months as the fight against inflation nears conclusion. Markets eagerly await rate cuts after the tightening campaign ended in September 2023.
The Federal Reserve has decided once again to leave interest rates unchanged, marking the sixth consecutive meeting without a rate hike since increases were halted in September 2023. This comes as no surprise to most financial experts.
The Long Road to This Point
For the past two years, the Fed has been battling inflation, seeking to avoid a recession in 2024. Their efforts bore fruit in the declining inflation figures seen late in 2023 and early 2024. However, the US economy now anxiously awaits the chance for rates to fall.
Unfortunately, that relief won’t come in March. The decision keeps rates steady for the sixth straight time, even as February data showed inflation reaching 3.1%. Though lower, that remains above the Fed’s 2% target.
Many Expect Cuts Soon
Experts predict rate cuts could come within months, as the inflation fight that led to 40-year highs in mid-2022 may conclude soon. Analysts will look to Jerome Powell‘s statements for insights into the Fed’s trajectory. The Chair is expected to reiterate the bank’s commitment to a wait-and-see approach.
Financial markets eagerly anticipate the end of the tightening campaign that ran through September 2023. For now, stability continues, as the Fed leaves interest rates unchanged yet again.
