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‘Watchful thinking’: Fed leaves rates unchanged despite persistent inflation
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Straight Arrow News
The Federal Reserve on Wednesday left its benchmark federal funds rate unchanged, despite stubbornly high inflation and recent signaling that rate hikes are back on the table.
The three dissenting Fed officials voted to raise rates.
Raising interest rates could help bring down the U.S. annual inflation rate, currently at 3.5%.
Many economists expected Wednesday’s decision to keep rates unchanged, but predict that the Fed will raise rates at its next meeting in September.
‘Very political’President Donald Trump has publicly pressured the Fed to lower rates, despite persistent inflation, and repeatedly threatened the job of former Chairman Jerome Powell when rates remained relatively high.