2024-02-01 09:14:00
Reem Abdel Hamid wrote Thursday, February 1, 2024 11:14 AM
The British Financial Times commented on the decision US Federal Reserve Stabilizing interest rates, and she said that the US Central Bank made clear in its meeting yesterday, Wednesday, two things: An interest rate cut is coming, but not as soon as investors wanted.
The newspaper reported that following two years of turmoil, including a bout of rampant inflation that caught bank officials by surprise, the Federal Reserve decided to postpone what it described as one of the most dramatic interest rate hike cycles in decades.
The official statement did not include any mention of “additional policy tightening,” meaning further rate hikes, if the bank deems it appropriate. Instead, there was a glimpse of triumph, as the central bank indicated that risks to full employment and low inflation were now moving towards a better equilibrium.
The British newspaper went on to say that US Federal Reserve observers interpret the matter to mean that the “punitive period” in which borrowing costs rose by 525 basis points in just 18 months, has officially ended.
But the newspaper warns once morest thinking that this means an imminent cut in interest rates. As was the case in the previous three meetings, the US Federal Reserve, at its meeting on Wednesday, kept the interest rate restricted at the highest rise in nearly 23 years, between 5.25% and 5.5%. While the bias for further hikes has disappeared, the Federal Reserve is not ready to cut yet. The reason for the postponement is that officials want greater confidence in me Reducing inflation At the target set by the bank of 2%.
The Financial Times pointed out that Powell’s exclusion of investors’ bet on an imminent rate cut contradicts the Federal Reserve Chairman’s statements in mid-December, when his cautious speech raised some expectations in the market that the interest rate cut would begin by March.
1706795026
#Financial #Times #Federal #Reserve #postponed #interest #cuts #inflation #control
