In a week in which the United States was surprised by an increase in inflation further delaying prospects of a soon cut in the Federal Reserve's rate cut, the European Central Bank held interest rates at a record high, although as usual signaling it could cut interest rates at its next meeting in June.
Despite an encouraging Personal Consumption Expenditure Index, PCE, Federal Reserve Chair Jerome Powell repeated on Sunday that the U.S. central bank isn’t in any rush to cut interest rates as policymakers await more evidence that inflation is contained.
The Federal Reserve left its benchmark interest rate unchanged this week, pausing an aggressive inflation fight amid growing optimism that the United States can achieve normal price levels without falling into a recession.
Since inflation in the United States is still excessive, most Federal Reserve officials expect to raise interest rates further this year this year, Chair Jerome Powell told a House committee on Wednesday, who also had to respond about alleged further banking regulations.
The United States Federal Reserve this Wednesday, following a two-day meeting decided to keep the interest rate unchanged but the Federal Open Market Committee anticipated that a further two hikes of quarter percentage moves can be expected before the end of the year.
US Federal Reserve minutes released this Wednesday showed officials split at their last meeting over how to continue with interest rates: some members saw the need for more increases while others expected a slowdown in growth to remove the need to tighten further.
Despite concerns of a possible recession and increased banking turmoil, the U.S. Federal Reserve extended its year-long fight against high inflation on Wednesday by raising its key interest rate by a quarter-point.
Several banking failures in the US this month have raised fears about the health of the financial system. The collapses follow a sharp rise in global borrowing costs, led by the US, which has shocked the world economy and raised worries about a painful downturn known as a recession.
The Federal Reserve Board on Monday announced that Vice Chair for Supervision Michael S. Barr is leading a review of the supervision and regulation of Silicon Valley Bank, in light of its failure. The review will be publicly released by May 1.
The United States Federal Reserve is not satisfied with the evolution of inflation in the country and has warned the fight is not over, and could possibly result in higher interest rates that those markets are anticipating and despite of growing fears they could lead to a recession.