Yesterday, the U.S. Federal Reserve decided to keep the interest rates unchanged. This decision aligned with market expectations, and Federal Reserve Chair Jerome Powell indicated a rate cut as early as September.
During the Federal Open Market Committee (FOMC) meeting, the Fed announced it would maintain the interest rate at the current range of 5.25% to 5.50%.
The Fed raised rates from March 2022 until July 2023 to combat inflation.
Since September 2023, it has held rates steady for eight consecutive meetings.
Despite this, the current interest rate remains the highest since 2001. The rate gap with South Korea (3.50%) also reached a historic high of 2 percentage points.
On this day, Powell stated, “If that test is met, a reduction in our policy rate could be on the table as soon as the next meeting in September.”
