US Fed Keeps Interest Rate Unchanged

6/12/2024 2:45:10 PM

(MENAFN- IANS) Washington, June 13 (IANS) The US federal Reserve on Wednesday kept the interest rate unchanged but hinted that there could be one cut between now and the end of the year as they continue the fight against inflation.

The Fed announcement came after a two-day meeting of its top officials.

They will meet four more times this year -- July, September, November and December.

The Fed increased interest rate multiple times starting in early 2022 when inflation hit a four-decade high and took it up to 5.3 per cent in July where it has been kept since.

The Fed expected to announce three cuts in 2024 as inflation showed signs of coming down, but decided against it every time as inflation stayed stubbornly high.

Fed Chairman Jerome Powell will address a news conference shortly.

Inflation has cooled down notably since May and the Fed predicted that inflation could be more stubborn than expected and the overall rate could end bottom out at 2.6 per cent by the end of the year instead of the 2.4 per cent they had estimated earlier.

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