The Fed Holds Interest Rates Steady and Is Not Quite Ready to Cut Them.
Federal Reserve officials held interest rates at their highest level in more than two decades at their first meeting of 2024 and hinted that their next move will be to lower borrowing costs — even as policymakers made clear they are not yet ready to make that cut. Jerome H. Powell, the Fed’s chair, said that the country had “six good months” of moderating inflation, but officials wanted to see continued progress before lowering rates. “We believe that our policy rate is likely at its peak for this tightening cycle, and that if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year,” Mr. Powell said. He added that when it comes to gaining enough confidence to move borrowing costs lower, “we want to see more good data.”
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