Fed holds rates as it struggles with inflation’s last mile

Experts disagree over risks of rising inflation and difficulty of Fed’s position

Jerome Powell
Jerome Powell
Photo: US Federal Reserve

The Federal Open Market Committee (FOMC) voted unanimously to hold the policy rate steady today (May 1), as policy-makers indicated inflation was not on track to target.

The federal funds rate stands unchanged between 5.25% and 5.5%, the peak reached in July 2023.

The Fed added a sentence to its statement on monetary policy that indicated its frustration on inflation. “In recent months, there has been a lack of further progress toward the committee’s 2% inflation objective,” it said.


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