USA, Fed Leaves Rates Unchanged

The Federal Reserve, the U.S. Central Bank, has decided to leave interest rates unchanged. This is the highest level of the cost of money since 2001, with rates between 5.25% and 5.50%, halted since July, as inflation has clearly slowed in recent months but still remains high.

“The economic outlook is uncertain, and we are very cautious about inflation risks,” the Fed said in a press release. “In evaluating any rate adjustment, the Fed carefully considers economic data, the evolution of the outlook, and the balance of risks. The Fed does not foresee that it is appropriate to lower rates until there is more confidence that inflation is moving toward the 2% target.”

Fed President Jerome Powell emphasized the fact that inflation is still too high and that the board is confident it will fall, but to continue cutting rates it is necessary to “wait for better data, a signal that we are on the right track.” Powell also explained that a cut in March would be unlikely, while in terms of U.S. economic growth, “there is a long way to go before we can say that a soft landing has been achieved.” In short, there is optimism, but still a long way to go.