The U.S. Federal Reserve kept its key interest rate unchanged Wednesday after having raised it 10 straight times to combat high inflation.
The Fed’s move to leave its benchmark rate at about 5.1 per cent, its highest level in 16 years, suggests that it believes the much higher borrowing rates it’s engineered have made some progress in taming inflation. But top Fed officials want to take time to more fully assess how their rate hikes have affected inflation and the economy.
The economic projections revealed a more hawkish Fed than many analysts had expected. Twelve of the 18 policymakers forecast at least two more quarter-point increases in the Fed's rate. Four supported a quarter-point increase. Only two officials envisioned keeping rates unchanged. Powell and other top policymakers have also indicated that they want to assess how much a pullback in bank lending might be weakening the economy. Banks have been slowing their lending — and demand for loans has fallen — as interest rates have risen. Some analysts have expressed concern that the collapse of three large banks last spring could cause nervous lenders to sharply tighten their loan qualifications.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Investors load up on call options as they brace for Federal Reserve decisionOptions trading on US exchanges at one point last week showed the biggest bias toward calls in 14 months. Read more.
Read more »
Investors load up on call options as they brace for Federal Reserve decisionOptions trading on US exchanges at one point last week showed the biggest bias toward calls in 14 months. Read more.
Read more »
Investors load up on call options as they brace for Federal Reserve decisionOptions trading on US exchanges at one point last week showed the biggest bias toward calls in 14 months. Read more.
Read more »
U.S. inflation slows, giving room for Federal Reserve to pause rate hikes - BNN BloombergU.S. inflation slowed in May, supporting the case for Federal Reserve officials to pause their run of interest-rate hikes this week.
Read more »
U.S. Federal Reserve set to make rate decision amid sticky inflation - National | Globalnews.caFed officials will also likely forecast a lower unemployment rate, perhaps to 4.1 per cent by year’s send, compared with their forecast in March of 4.5 per cent.
Read more »
Stock market today: Global stocks, Wall Street futures mixed after U.S. inflation coolsGlobal stock markets and Wall Street futures were mixed Wednesday after a cooler reading on U.S. inflation buoyed hopes the Federal Reserve will postpone a possible interest rate hike.
Read more »