Egypt Daily News – The Federal Reserve has opted to maintain interest rates in the range of 5.25% to 5.5% for the eighth consecutive time, marking the highest levels in 22 years. This decision aligns with market expectations following similar rate holds in recent months, including June and May.
The Federal Open Market Committee (FOMC) continues to observe the effects of the monetary tightening that has been in place for about two years. The Fed is awaiting more evidence that inflation is moving toward its 2% target before considering any monetary policy easing.
Recent data suggests a cautious optimism for the Fed, as the core inflation rate—the Fed’s preferred measure—has shown moderate increases in June, coinciding with robust consumer spending. These developments provide a basis for policymakers to pursue efforts to control inflation while attempting to sustain economic growth.
