Federal Reserve Leaves Main U.S. Interest Rate Unchanged, Impacting Millions of Consumers and Businesses

Today, the Federal Reserve held its meeting to decide its next move on interest rates, a policy that will have a major impact on millions of consumers and businesses. The central bank left the main U.S. interest rate unchanged at 5.25% to 5.50%, citing an easing of economic conditions while also acknowledging that inflation is still higher than its 2% target.

The Fed has raised interest rates at a historically fast pace in the last 18 months, increasing its main rate at 11 consecutive meetings from March last year until its meeting in July. This string of hikes reflects the Fed’s efforts to combat the highest inflation rate in four decades, which reached 9.1% in June 2022.

The Fed’s decision to keep the main rate unchanged will have a major impact on the economy. Consumers and businesses that rely on loans, credit cards and other borrowing will be affected by the decision. Mortgage rates have already been pushed to their highest levels in decades and credit card APRs are at record highs.

The Fed’s decision to keep the main rate unchanged is a sign that the central bank is confident that its series of rate hikes over the last 18 months will be enough to bring inflation under control. It remains to be seen whether this will be the case, and the Fed will be closely monitoring the economic situation in the coming months.