Federal Reserve policymakers on Wednesday voted to keep interest rates unchanged as inflationary pressures within the U.S. economy start to increase again.
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TheWallStreetJournalchiefeconomicscorrespondentNickTimiraossaysitwouldtakesurginginflationoroilpricesfortheFederalReservetoraiseratesagain.
TheFederalReserveonWednesdayheldinterestratessteadyforthesixthstraighttimeashighinflationdimmedtheoddsofreductionslaterthisyear.
Thewidelyexpecteddecision–whichleftinterestratesunchangedatarangeof5.25%to5.5%,thehighestlevelin23years–comesamidsignsthatprogressoninflationisstalling,orevenstartingtoreverse.
“Inflatoinhaseasedoverthepastyearbutremainselevated,”theFederalOpenMarketCommitteesaidinitspost-meetingstatement.
Policymakersraisedinterestratessharplyin2022and2023,approving11rateincreasesinthehopesofcrushinginflationandcoolingtheeconomy.Inthespanofjust16months,interestratessurgedfromnearzerotoabove5%,thefastestpaceoftighteningsincethe1980s.
Hikinginterestratestendstocreatehigherratesoncons
