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Wednesday, April 24, 2024

US: Fed Keeps Interest Rates Unchanged – Expects Cuts in 2024

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Fed officials predict three or four rate cuts over the next year

ΗΠΑ: Η Fed διατηρεΙ αμεταβλη&tau ;α τα επιτoκια – Προβλeπει μειoσε&iota ;ς το 2024

Federal Reserve Board Chairman Jerome Powell – Photo: AP

The US central bank (Fed) kept interest rates unchanged in its range 5.25% to 5.50%, while predicting successive cuts next year, taking into account the slowdown in economic activity and stressing that inflation remains “elevated”.

Fed officials are forecasting three or four cuts interest rates next year, aiming to reach 4.6% by the end of 2024.

Recent indicators suggest that economic activity in the US slowed compared to the third quarter of the year, according to the the Fed's monetary policy committee, which underlines in a statement that “inflation has slowed over the last year, but remains high”.

Inflation in the US is estimated to decline to 2.4% at the end of 2024, according to updated forecasts – versus 2.5% forecast at the September meeting.

In terms of growth, this year will be stronger than originally forecast – 2.6% instead of 2.1 %– but is expected to slow in the coming year before recovering thereafter. No change is foreseen in the unemployment rate, which is expected to stand at 3.8% this year and rise to 4.1% in 2024.

With information from APE, AFP, Reuters

Source: www.kathimerini.com.cy

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