Fed postpones rate cut until 'greater confidence' in sustainable inflation levels

Interest rates at 5.25%-5.50%

clock • 2 min read

US Federal Reserve chair Jerome Powell has argued against cutting interest rates until inflation moves "sustainably towards 2%".

Powell's comments came on Tuesday (9 July) during a Congress presentation of the semi-annual monetary policy report published on 5 July. According to him, while data for the first quarter of 2024 "did not support such greater confidence", the most recent inflation readings showed "some modest further progress" in that direction. As a result, the committee left interest rates unchanged at between 5.25% and 5.5% at the last meeting in June. However, Powell added, recent US market indicators highlighted continuous economic expansion, with private domestic demand remaining "robust". In Ju...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on US

Richard de Lisle: How a second Trump win could impact the US economy
US

Richard de Lisle: How a second Trump win could impact the US economy

US Fed independence at risk

Richard de Lisle
clock 17 July 2024 • 4 min read
Friday Briefing: 'It's no good waiting to 2% to start acting'
US

Friday Briefing: 'It's no good waiting to 2% to start acting'

Friday Briefing

Eve Maddock-Jones
clock 15 July 2024 • 4 min read
Janet Yellen sounds fears of US dollar being weakened by States' use of sanctions
US

Janet Yellen sounds fears of US dollar being weakened by States' use of sanctions

Countries deterred from greenback trades

Eve Maddock-Jones
clock 15 July 2024 • 1 min read
Trustpilot