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March 20, 2024 | Reading Time: 1.5 Minutes
The Federal Reserve decided to keep interest rates unchanged, maintaining them at about 5.3 percent, with a forecast indicating a potential decrease to 4.6 percent by the end of 2024. The Fed is cautiously considering rate cuts in response to persistent inflation but is also mindful of avoiding a recession. Fed Chair Jerome H. Powell emphasized the need to balance inflation control with maintaining employment levels during a press conference. The decision on rate cuts is being approached cautiously, with potential cuts likely before the November election.
Inflation has moderated from its peak but remains above the Fed’s target. The Fed is closely monitoring economic indicators, including inflation and job market dynamics, to inform its decisions on interest rates. Despite the uncertain economic outlook, officials anticipate stronger growth in the coming years.
Additionally, the Fed discussed plans regarding its balance sheet, hinting at potential changes in its bond holdings. Overall, the Fed’s decision-making is contingent on economic data, with a focus on managing inflation while supporting economic growth.
