The US central bank (Fed) today, as expected, kept its key interest rate in the range of 5.25 to 5.50% it has been in since July, a decision taken unanimously by the 12 members with voting rights.

However, the U.S. Federal Reserve’s monetary policy committee (FOMC) clarified that it “does not anticipate that it would be appropriate to cut interest rates until it is more confident that inflation is steadily declining toward the 2%” target level, according to the press release issued after the meeting. The Fed said at its mid-December meeting that it expects several rate cuts in 2024.

Fed interest rates are “probably at their highest point for this tightening cycle,” Fed Chairman Jerome Powell said today, predicting “that if the economy plays out as expected, it will probably be appropriate to start cutting (them) this year.”

The Fed chairman also underlined in a press conference that “almost all” members of the Fed’s monetary policy committee are “in favor of a rate cut this year”, clarifying however that “the timing of that will depend on our belief that inflation is on a sustainable path towards 2%”.

The US central bank probably won’t have enough “confidence” to start cutting interest rates in March, its president warned.

“It is not considered likely that the Committee will reach, by the March meeting, a level of confidence that will allow it to determine the month of March as the ideal time” to start cutting interest rates, Jerome Powell said.