2024-05-02 03:00:00 ET
Summary
- The Federal Reserve left its policy rate unchanged and argued its policy stance is “in a good place”, but officials are concerned about the recent lack of progress on inflation.
- Rate hikes remain unlikely, but the Fed is prepared to leave interest rates at current levels until that progress is achieved or the jobs market clearly weakens.
- The dollar took its cue from the 10bp decline in short-dated US yields and the near 1% rally in S&P equity futures.
By James Knightley | Padhraic Garvey, CFA | Chris Turner
Fed keeps rates at 5.25-5.50%
As universally expected, the Federal Reserve has left the Fed funds target rate range at 5.25-5.50%. The decision was unanimous and was made pretty easy, given inflation continues to run too hot for comfort, consumers are still spending strongly, and the economy added more than 800,000 jobs in the first three months of the year....
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Fed Holds Policy Steady: Rate Hikes Remain 'Unlikely' Despite Lack Of Inflation Progress