INSUBCONTINENT EXCLUSIVE:
This Wednesday, the Federal Reserve held interest rates steady, ranging from 5.25% to 5.5%, as market analysts anticipated.Initially, a 70%
likelihood of a rate decrease had been forecasted for this session.Yet, expectations shifted due to unexpected economic growth, higher
as key factors in maintaining the current rate.It remains significantly high despite a reduction in inflation over the last year
inflation metric for the Fed, was reported at 2.4%, with the core index at 2.8%.Fed Keeps Rates Steady, Foresees Hike in Future
(Photo Internet reproduction)The Federal Open Market Committee (FOMC) announced ongoing surveillance of economic indicators to inform future
monetary policies.The committee is ready to modify policies if needed to ensure its objectives are met.Fed Keeps Rates Steady, Foresees Hike
By the end of the year, a 0.75 percentage point reduction had been anticipated.However, expectations for 2025 now range from 3.75% to 4%, a
rise from the previous 3.5% to 3.75%.The forecast for the end of 2026 has also been raised to between 3% and 3.25%, from 2.75% to 3%.These
changes are due to worsened PCE expectations
Predictions for the core PCE by the end of 2024 moved from 2.4% to 2.6%.Moreover, the Fed now expects more robust economic activity this
year, adjusting GDP growth for 2024 from 1.4% to 2.1% and the unemployment rate forecast from 4.1% to 4%.These decisions and projections
