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This is demonstrated by the report on Wednesday regarding the steering committee meeting of the Federal Open Market Committee that took place on June 13–14.
As a result of its findings, the Fed kept the prime rate at 5.00–5.25% as anticipated.
According to the document, the financial regulator's leadership decided against raising the rate this time due to worries about the expansion of the American economy. A move like this, in the opinion of meeting attendees, "would give more time to assess the economy's progress toward the committee's goals of maximum employment and price stability."
The committee agreed that the rate ought to be raised, but more gradually. The rate should be raised by 25 bps more than twice in 2023, according to more than half of the committee members. They believe that there are "few clear signs" that inflation is approaching the regulator's 2% target.
As stated in the publication, Fed experts continue to support their predictions from April that the US will experience a modest recession. It will, in their estimation, persist for around two quarters, from October 2023 to March 2024. The staff of the financial regulator did not, however, promise such a course of action. They believe there is a good likelihood that the American economy will continue to expand slowly.
source: cnn.com
As a result of its findings, the Fed kept the prime rate at 5.00–5.25% as anticipated.
According to the document, the financial regulator's leadership decided against raising the rate this time due to worries about the expansion of the American economy. A move like this, in the opinion of meeting attendees, "would give more time to assess the economy's progress toward the committee's goals of maximum employment and price stability."
The committee agreed that the rate ought to be raised, but more gradually. The rate should be raised by 25 bps more than twice in 2023, according to more than half of the committee members. They believe that there are "few clear signs" that inflation is approaching the regulator's 2% target.
As stated in the publication, Fed experts continue to support their predictions from April that the US will experience a modest recession. It will, in their estimation, persist for around two quarters, from October 2023 to March 2024. The staff of the financial regulator did not, however, promise such a course of action. They believe there is a good likelihood that the American economy will continue to expand slowly.
source: cnn.com
