The US Federal Reserve is keeping the key interest rate at a consistently high level even after the turn of the year. It decided on Wednesday to maintain the range of 5.25 to 5.50 percent. This was the fourth time in a row that the central bank paused, having previously raised interest rates in large steps in the fight against inflation. The Fed is likely to turn things around this year and loosen monetary policy if inflation continues to weaken.
The decision was expected. It is the highest value in more than two decades. Since March 2022, the Fed has raised its key interest rate by more than five percentage points at a record-breaking pace in the fight against inflation – but has recently stopped adjusting the interest rate screw.
In December, the monetary authorities around Fed Chairman Jerome Powell envisaged several interest rate cuts for 2024 in their outlook.