The US Federal Reserve May Take a Break from Raising Interest Rates
Introduction
After more than a year and a half of raising interest rates in the United States, many expectations point to the possibility that the US Federal Reserve will take a break from raising interest rates at its meeting, which ends next Wednesday.
The Expected Decision
The Fed is expected to leave rates unchanged in the range of 5% to 5.25%, which will assess the outlook for the economy after the recent pressure in the banking sector.
Possible Future Hike
It is speculated that Federal Reserve Chairman Jerome Powell may use his press conference to point to the possibility of another rate hike in July, as well as signals about inflation and the economy.
The Role of Consumer Price Index
Attention is focused on the report on the consumer price index for May, which will be released tomorrow, on Tuesday, as the growth of this indicator could restore the trend to raise interest rates at this week’s meeting by a quarter of a percentage point.
The Fed’s preferred measure of inflation, a measure of personal consumption spending that excludes food and energy costs, rose 4.7% year-on-year in April from 4.6% in December.
Conclusion
Overall, the US Federal Reserve is expected to take a break from raising interest rates this week and assess the economy after the recent pressure in the banking sector. However, the decision may change based on the consumer price index report for May, which will be released tomorrow.
