Fed holds rates as it struggles with inflation’s last mile
Experts disagree over risks of rising inflation and difficulty of Fed’s position
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.
Year-on-year
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