The US Federal Reserve announced its decision to freeze interest rates at 5.5% without change at the May meeting, and the statement carried an admission of failure to achieve any progress against inflation recently, a sign that prompted markets to expect that the interest rate cut would come late, specifically at the November 2024 meeting.
The most important statements of Jerome Powell
Inflation, despite its decline in the last year, remains strongly high.
There is no confirmation of any progress against inflation, and the path is unclear.
We are very aware of the risks of inflation to the economy.
All inflation data in 2024 were higher than our expectations.
Our policy is driven by our goals, not a specific plan.
It will take a long time before we are confident enough to make the decision to cut rates.
I don't think our next decision in June could be a rate cut.
Raising interest? Before making a decision like that, we must see that our policy is not sufficient, and this is not the current situation now.
A sudden, violent weakness in the labor market may precipitate a rate cut.
Upcoming inflation data will be the main driver of the Fed's next decision.
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