WASHINGTON– The Federal Reserve (Fed, US central bank) began its monetary policy meeting on Tuesday, during which it will discuss the appropriate time to begin reducing its interest rates.
The media and Wall Street have been pushing for the central bank to cut interest rates for a year and a half. Now they say there are signs of a cut at its next meeting in mid-September.
The Federal Reserve’s Meeting of the Monetary Policy Committee (FOMC) “started at 10:00 a.m. as scheduled,” a spokesman for the Central Bank confirmed.
The meeting will conclude on Wednesday with a statement at 2 p.m. Washington DC time, and Fed Chairman Jerome Powell will hold his usual press conference half an hour later.
The Fed is expected to keep rates at their current levels of 5.25-5.50%, the highest since 2001.
An interest rate cut appears to be on the horizon as inflation tends to moderate, according to the Biden administration.
Americans still see no relief in prices anywhere; on the contrary, prices for many products have continued to rise.
The Fed raised interest rates as a way of making credit more expensive, thereby discouraging consumption and investment, and thereby reducing pressures on prices.
Source: With information from AFP.