Official announcements from the Federal Reserve or verified news sources

Fed Holds Rates Steady at 23-Year High of 5.25-5.5%, Unanimous Decision

May 1, 2024, 06:07 PM

The Federal Reserve has decided to maintain the interest rates steady at a 23-year high of 5.25-5.5% for the sixth consecutive meeting, citing a lack of progress towards the 2% inflation target. This decision comes despite higher-than-expected inflation rates, indicating that the Fed is not planning any rate cuts in the near future. Additionally, the Fed announced a slowdown in the pace of its balance-sheet runoff starting in June, reducing the treasury runoff cap to $25 billion while maintaining the mortgage-backed securities cap at $35 billion. Fed officials voted unanimously for this decision.