The US Federal Reserve is likely to decrease interest rates for the first time in more than four years on Wednesday. The move, foreseen by financial markets, occurs when inflation reaches the central bank's long-term target of 2% and the labor market contracts.
In the last meeting, the Federal Open Market Committee (FOMC) under the leadership of Jerome Powell has opted to maintain the status quo by keeping key interest rates unchanged at the range of 5.25% to 5.50%.
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Federal Reserve Chairman Jerome Powell and other top officials have hinted at a rate cut this month. The main question for policymakers during their Tuesday and Wednesday meetings will be whether to implement a 25- or 50-basis-point decrease.
This might be the Fed's first decrease since March 2020, when rates were lowered to near-zero to boost the economy during the Covid-19 outbreak.
In 2022, the Fed began raising interest rates in reaction to a sharp rise in inflation driven by a post-pandemic supply problem and the ongoing conflict in Ukraine. The Fed has held its key lending rate at a two-decade high of 5.25% to 5.50% for the past 14 months, awaiting economic recovery.
FOMC Meeting Date and Time: Outcome Announcement
The Federal Open Market Committee (FOMC) meeting is scheduled for September 17-18 and the Fed Chair Jerome Powell is scheduled to unveil the outcome of the FOMC meeting on Wednesday, September 18, around 11:30 PM Indian Standard Time (IST).
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