Further interest rate hikes by the US central bank are unlikely but not out of the question, Fed Chairman Jerome Powell warned today
THE US central bank (Fed) maintained, as expected, unchanged its interest rates in the range of 5.25% to 5.50%while predicting successive cuts next year, taking into account the slowdown in economic activity and stressing that inflation remains “high”.
A further rate hike by the US central bank is unlikely, but not out of the question, Fed Chairman Jerome Powell warned today at a press conference.
The Fed’s monetary policy committee “considers it unlikely that it would be appropriate to raise interest rates again, but has not ruled it out,” Powell said.
Fed officials are predicting 3 or 4 rate cuts next year, with a target of reaching 4.6% by the end of 2024.
Recent indicators suggest that economic activity in the US slowed compared to the third quarter of the year, according to the Fed’s monetary policy committee, which underlines in a statement that “inflation has slowed over the last year, but remains high.”
Inflation in the US is estimated to fall to 2.4% at the end of 2024, according to updated forecasts – versus 2.5% forecast at the September meeting.
In terms of growth, this year will be stronger than initially forecast – 2.6% instead of 2.1% – but is expected to slow next year before recovering thereafter.
No change is foreseen in the unemployment rate, which is expected to be 3.8% this year and rise to 4.1% in 2024.
Source: Skai
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