News - Federal Reserve leaves key interest rate at 5.25 percent

By Mike Hesp

Federal Reserve leaves key interest rate at 5.25 percent

Laws and regulations
USA

The US Federal Reserve Bank leaves the key interest rate unchanged at 5.25 percent, deviating from hawkish monetary policy for now.

For now, the Fed is pausing its strict monetary policy of recent months. This means that the key interest rate will not be raised: The U.S. Federal Reserve Bank is leaving the key interest rate unchanged at 5.25 percent for now, as expected by the vast majority of market analysts.

The U.S. monetary watchdogs stated this in a press release disclosed.

This is the first time in 17 months that the U.S. central bank has deviated from its strict course of tightening monetary policy.

One reason is the recent drop in the inflation rate in the US. At 4.0%, consumer prices last May were well below the Fed's current rate.

In the latest press conference on May 3, Federal Reserve Chairman Jerome Powell emphasized that U.S. monetary watchdogs would closely monitor developments in consumer price levels and other economic data to respond flexibly to changes.

Although the Fed does not expect another US recession this year, they allude to two more interest rate hikes in 2023.

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