In an expected event, as a measure to curb inflation that does not subside and deal with banking turmoil in the United States, the Federal Reserve (FED) raised its interest rate from 4.75% to 5%.
At a news conference in Washington, Fed Chairman Jerome Powell said that “if the economy performs as projected, the appropriate level of the federal funds rate will be 5.1% at the end of this year, from 4.3%. at the end of 2024 and 3.1% at the end of 2025.
Powell stated, however, that these projections are not a decision or plan of the Committee, because if the economy does not evolve as projected, the policy path will be adjusted accordingly to promote the objectives of maximum price and employment stability.
He maintained that the Fed will continue to be committed to reducing inflation to the 2% target and keeping long-term inflation expectations well anchored.