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U.S. Fed Holds Interest Rate Steady

U.S. Fed has kept the rates unchanged at 3.5-3.75%. The Federal Reserve has raised inflation expectations.

By · · GlobalToday24x7

The Federal Reserve has kept its key rate unchanged, yet almost half the Central Bank’s policymakers said that they could support a rate hike later this year.

The Fed decided to hold rates steady at 3.50-3.75% for the 4th consecutive meeting, with the vote being unanimous for the first time in a year.

Fed leaders also released their Summary of Economic Projections on June 17, raising year-end PCE inflation expectations to 3.6% from 2.7% in March.

Newly elected Federal Reserve Chairman Kevin Warsh held his first press conference at the helm of the Central Bank, announcing an overhaul to the Fed’s operations.

He announced the establishment of 5 task forces, addressing the Fed’s communications, its balance sheet, its reliance on data sources, productivity and jobs, and the Central Bank’s inflation frameworks.

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