Fed holds interest rates steady, wants inflation to fall further
02/01/2024 02:38
The Federal Reserve is maintaining its fed funds target rate of 5.25 to 5.5 percent. In its statement, the Federal Open Market Committee makes it clear they want to see inflation decline further, writing "The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent." Officials also spoke of recent economic strength, saying "economic activity has been expanding at a solid pace. Job gains have moderated since early last year but remain strong, and the unemployment rate has remained low." However, they did remove language that hinted more rate hikes could be on the table. Yahoo Finance Federal Reserve Reporter Jennifer Schonberger reports the breaking details. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Stephanie Mikulich
The Federal Reserve is maintaining its fed funds target rate of 5.25 to 5.5 percent. In its statement, the Federal Open Market Committee makes it clear they want to see inflation decline further, writing "The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent."
Officials also spoke of recent economic strength, saying "economic activity has been expanding at a solid pace. Job gains have moderated since early last year but remain strong, and the unemployment rate has remained low." However, they did remove language that hinted more rate hikes could be on the table.
Yahoo Finance Federal Reserve Reporter Jennifer Schonberger reports the breaking details.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Stephanie Mikulich