Washington, Jun. 15, (dpa/GNA) - After ten consecutive rate hikes, the US Federal Reserve (Fed) announced on Wednesday that it is leaving its key interest rate of between 5% and 5.25% unchanged.
Since March 2022, the Fed has repeatedly raised its key rate by a total of five percentage points to stem high consumer prices.
The cycle was considered one of the fastest and most severe periods of tightening interest rates in the Fed’s history.
However, the central bank is already hinting that the pause will be followed by further rate hikes later this year.
The Fed’s decision not to raise the key interest rate was likely supported by new data on inflation.
According to the US government, the rise in consumer prices in the United States slowed noticeably in May. The 4% rise was the lowest since March 2021.
The rate of inflation had risen to around 9% last year.
The Fed’s Chairman Jerome Powell had already recently hinted at a possible pause in interest rate hikes, but this was not set in stone.
The Fed now estimates an average key interest rate of 5.6% at the end of the year. In March, it was still 5.1%.
GNA