Today we decided to leave our policy interest rate unchanged.Federal Reserve Chair Jerome Powell on Wednesday. The Federal Reserve – also referred to as the nation’s central bank – has held its key interest rate flat.
The Big Picture: The Federal Reserve paused the "most aggressive push to quash inflation since the 1980s" on Wednesday after announcing it will take a break in raising interest rates (CBS News). For the first time in more than a year, borrowing costs for things like car loans and credit cards will not rise.
Why It Matters: The central bank has raised interest rates a total of 10 times since March 2022 in order to combat inflation. Inflation has decreased from 9% to 4% from June 2022 to May 2023.
Important to Note: The Fed may increase rates in future months if needed. The inflation rate goal remains at 2% and the Fed's Open Market Committee said it will raise rates "if risks emerge that could impede the attainment of the Committee’s goal."
by Jenna Lee,